Lean and Productive: February 2012

Wednesday, February 15, 2012

Superior Service Strategies: How to Win and Keep Customers

How the customer is treated from the time she walks through your doors until she leaves add up to the total customer experience that she will remember.

What does it cost you to gain a new customer?

Contemporary management theory tells us that:

"It's six to seven times more expensive to gain a new customer than it is to retain an existing customer."

"A 5% increase in customer retention can increase profits by 25% to 95%.”

Harvard Business review 2001

For a business person like you, this means that after spending so much money on getting the customer to come to your store, outlet, restaurant or wherever, your primary goal needs to be to keep her coming back for more. The above demonstrates that what is most important for us is the lifetime value of the customer rather than the one time revenue.
My friends in the soft drinks industry tell me that during the time Coke (or any soft drink brand) was distributed in bottles, the bottle had to be re-cycled seven times before the company recovered the cost of the glass bottle. This means that the company made money only on the eighth purchase of the soft drink. This meant that customer retention had to be the primary focus of the soft drinks company.

In your case, have you calculated just how much it costs you to gain a new customer? Are you able to recoup your sales and marketing expenses per customer on just a single transaction? For most companies, the answer would be a most definite No. They need the customer to keep coming back to cover just the marketing expense.

What is the Lifetime Value of the Customer

Let us say that you can make Php 1,000 from your customer. If she buys from you only once, then her value to you is Php 1,000. However, if you are able to keep her coming back once a month for the next 5 years, then what is her value to you now? It would be Php 1,000 x 12 times a year x 5 years, giving you a total of Php 60,000. Wow! This means that if we make her happy enough to keep coming back to our store, we can expect to sell her more than Php 60,000. Is she a VIP customer or what?

Does your staff treat your customers like VIPs?

Everyone your customer meets and everything she sees, hears, or touches impacts her buying experience. Your people, from the security guard who ushers her into your store, to your sales people, to your cahier at the end, they all add to the total experience. A misstep by any one of your people could result in your losing the lifetime value of the customer you have worked so hard to win. Avoiding this scenario requires that your organization become truly focused on delivering superior customer service.

Get your Staff Trained

Creating focus on customer satisfaction starts with proper training. Your staff need to understand the fundamentals and develop the correct strategies that will keep the customers coming back. The “Superior Service Strategies” of RMP Consultancy can help you achieve this goal.

Click here to see the seminar details.

Who should attend?

This seminar is suitable for Managers, Supervisors, Team Leaders and everyone in a Customer Focused Organization

This is a highly interactive seminar with short presentations and games and exercises to demonstrate the principles being discussed. The participants are expected to take part in the games and exercises.

Call or Email Chili Pefianco

Email seminars@rmpconsultancy.com

Telephone:(632) 697 0767 Tel (632) 579-0233

Mobile (Globe) 0917-882-5578

Mobile (Smart) 0920-918-7358

Slots are limited so register Now!

Pre-registration is required. Please email seminars@rmpconsultancy.com or call Chili Tel (632) 697 0767 Tel (632) 579-0233 Mobile (Globe) 0917-882-5578 Mobile (Smart) 0920-918-7358 for more information. A registration form can be downloaded from our website at http://rmpconsultancy.com/en/downloads/. Kindly email the registration form to seminars@rmpconsultancy.com.

Other Seminars in the Essential Business Skills Series

Click http://rmpconsultancy.com/en/rmp-programs/
to see the other great programs in the Series.

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Implementing 5S in your Workplace

By Rafael M. Pefianco MPM FAAPM

Are you looking for ways to start reducing your costs and increase productivity? Implementing a Five S program is a very good way to start. Considering the tight economic environment we are currently facing, it is a good idea to get better organized, reduce waste and avoid unnecessary costs anywhere we can. This is where 5S can be helpful.

Using 5S to Highlight your Competitive Advantage

Isn’t 5S just about cleaning and good housekeeping? A good 5S program is a lot more than just regular cleaning and good housekeeping. In practice, 5S is the first part of executing a process improvement program. This is done in both manufacturing and service industries. FS is a proven systematic approach to cleaning up, getting organized and using standards to improve productivity, reduce waste, and improve safety and quality.

How do I use 5S to improve my business?

For example, let’s say that after analyzing your business processes, you realize that your competitive advantage is in improving the turn-around of your product or service. You want to be able to deliver quicker and better than your competitor. Where would you start?

5S could be helpful to you here. By implementing 5S you will be able to remove all the clutter and potential sources of waste that are not absolutely essential to delivering the value that your customer demands. After the initial clean up, you will begin to see better how your processes could be organized more efficiently. You will begin to see opportunities for visual management that will help your employees avoid making costly mistakes.

Maintaining your Competitive Advantage through 5S

After the initial clean up, 5S can help you maintain your competitive advantage. 5S provides a regular audit system that will help you maintain the levels of productivity you achieved after the initial clean up. 5S will help you develop your company standard for where the things your employees need should be stored and how they are to be cleaned and maintained so that they are always available. The end result should be avoiding waste as much as possible and reducing your cost to deliver.

5S is a very Simple but Powerful Tool

5S is a very simple and yet powerful tool that you can easily implement right away. The principles underlying a Five S program at first appear to be simple, obvious common sense. And they are. However, many companies still ignore these basic principles and are missing a great opportunity to increase their productivity.

What kind of companies have 5S?

The benefits of 5S were first realized in manufacturing and industrial operations. However, the benefits learned there are now being applied in all kinds of businesses, from retail stores to distribution businesses, from private to government offices. All types of businesses and all areas within a business, will realize benefits from implementing a 5S program.

Implementing 5S in your Workplace Seminar

RMP Consultancy can provide you the training you need to implement this program right away. Give us a call.

Course Title:
Implementing 5S in your Workplace

Benefits of the Course

At the end of the program, participants are expected to be able to:

Implement a 5S program in their work place
Recognize and eliminate unnecessary waste in current procedures
Improve business processes

What you will Cover

The Basic Principles of 5S
Implementing 5S in your organization
The Red Tag System
Creating a Visual Workplace
Documenting the Improvements
Creating and Developing your 5S Audit Sheets

Methodology

This is a highly interactive course with short lectures and exercises.

Call or Email Chili Pefianco

Email seminars@rmpconsultancy.com

Telephone:(632) 697 0767 Tel (632) 579-0233

Mobile (Globe) 0917-882-5578

Mobile (Smart) 0920-918-7358

Slots are limited so register Now!

Subscribe to the RMP Training Newsletter

Thank you reading my blog. If you wish to subsribe to our RMP Consultancy Training Newsletter and receive articles and updates from us, please opt-in at http://rmpconsultancy.com/en/. You can un-subscribe anytime.