And the key is...
Churn is the most important word to your subscription business. A Gartner Group reports that 80 percent of your future revenue will come from 20 percent of your current customers. By investing directly in those relationships, you can ensure you are maximizing the lifetime value of each customer. A study conducted by Bain & Co. cited that increasing customer retention rates by 5 percent increases profits by 25 to 95 percent.
I get it.
There’s truly nothing more valuable to your business than your customer base. The desire for a business to manage their customer communication within their organization, with their employees, is completely valid.
However, just because customers will be serviced primarily by an internal contact center does not mean they should ONLY be serviced by an internal contact center. When it’s not your core competency, contact centers, by their sheer nature, can lead to inefficiencies.
While many businesses are increasingly driving self-service models, there remains an ever-present need for a high performing contact center. Where organizations miss the mark is attempting to replace the conversation with robust scripts, scenarios, IVR, etc. They overlook the reason the customer called in the first place--for individual service. It is frustrating and aggravating to engage in a customer service call in which policies and procedures are regurgitated from content the customer has most likely already reviewed…they are calling on the hope that the brand will treat them uniquely or as an exception. If that’s the case, then a one size fits all approach will not only fall short of customer expectations, it may lead to customer loss and negative customer sentiment.
Everyone’s family has a secret recipe for Thanksgiving that’s been passed down over the years. The pie, the stuffing and even the cranberry sauce all have a personal touch that has been tested and perfected lovingly over time.
Many times creating exceptional employee engagement can seem just like that Thanksgiving pumpkin pie – a mysterious recipe that seems just out of grasp, so secret you can’t wait for the day when someone will tell you how to make it perfect. You might test a few techniques here or there, but when the result isn’t perfect, it’s often times blamed on not having that top-secret recipe.
Your workforce is the single largest line item expense on your balance sheet, and yet far too often this number is exasperated even more by unnecessary turnover. It is estimated that replacing an employee costs about 20% of their salary, although some estimate even more. Multiply this by the number of employees that leave your company every year and you’ve got a serious problem.