Post-sale Customer Loyalty


Maintaining the loyalty of major current customers can be crucial for improving a business’s profitability as its markets mature. Loyal customers become more profitable over time. The firm not only avoids the high costs associated with acquiring a new customer, but it typically  benefits because loyal customers a) tend to concentrate their purchases, thus leading to larger volumes and lower selling  and distribution costs, b) provide positive word-of-mouth and customer referrals, and c) may be willing to pay premium prices for the value they receive.

Periodic measurement of customer satisfaction is important, then, because a dissatisfied customer is unlikely to remain loyal to a company over time. Unfortunately, however, the corollary is not always true. Customers who describe themselves as satisfied are not necessarily loyal. Indeed, 60 to 80 percent of customer defectors in most businesses are “satisfied” or “very satisfied” before their defection. In the interim, perhaps, competitors improved their offerings, the customers requirements changed, or other environmental factors shifted. Businesses that measure customer satisfaction should be commended, but urged not to stop there. Satisfaction measures need to be supplemented with examinations of customer behavior, such as measures of the annual retention rate, frequency for purchases, and the percentage of a customer’s total purchases captured by the firm.

Defecting customers should be studied in detail to discover why the firm failed to provide sufficient value to retain their loyalty. Such failures often provide more valuable information than satisfaction measures because they stand out as a clear, understandable message  telling the organization exactly where improvements are needed..

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Delegation


This can be critical to an organization, because employees are not allowed to develop the responsibilities and confidence levels that come only with being given full credit or blame for outcomes. If a boss is always butting in and making corrections, or double checking everything before it is sent out, then the worker can never grow. The corollary is that the boss doesn’t grow either, being too busy running around trying to do everyone else’s work.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

The Consequences of a Bad Boss


The leading cause of stress is the bad boss. In most organizations everyone in the company expect the chief executive officer has a boss, or has the potential to become a boss, even if that means you are instructing an apprentice or a student who is at the company for a short time on a work orientation program.

In terms of making our own choices in response to stress, even the very lowest person on the work ladder is still a boss—a boss of his or her own department. Thus, what a lot of people complain of having a bad boss, the corollary is that most of us are bad bosses—if not of others, then at least of ourselves.

The damage that a bad boss does is sometimes far more widespread than is seen at the time. With the ultimate control, as well as, knowledge of the bigger picture, the boss escapes the highest levels of stress at work, but can still be a powerful stress carrier. In just the same way that a child who is humiliated by a bully comes home and yells at a younger sibling, a boss can transfer anxieties and stresses to employees without ever letting them know the reasons behind the negative behavior.

When an employee is frustrated all day by the boss, these frustrations tend to get transferred along to innocent bystanders, rather like one of those dreadful chain letters. One may see drastic repercussions, ranging from demoralization and loss of self-worth, to burnout of virtually any organ system in the body. In the brain this burnout takes the form of fatigue, insomnia, anxiety, depression, or obsessive behavior. Aggression can be triggered, causing such tragedies as life and child beating or even mass murders during a sudden wild shooting spree. Bad bosses are even the motivation for some suicides. In the stomach or heart, the results of a bad boss are often seen in ulcers or heart attacks.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.