What is the #1 reason clients leave?

“Why do customers leave?” is part of the research conducted by the American Society for Quality.

9 percent choose to go with a competitor.  

10 percent leave for logistical reasons (move, death, etc.).  

Another 14 percent depart because of product or service dissatisfaction.

What is by far the biggest reason that clients leave us, scoring 67 percent?

An attitude of indifference on the part of a company employee or team member.

Each client-facing person in our organizations has the ability to destroy the consumer experience and send our clients running.  

This research is aligned with data that shows 90% of communication is not the message, but how the message is delivered.

These metrics were shared as part of a virtual class I took earlier this year from Ritz Carlton titled: “Best Practices & Foundations of Our Brand.”

At Ritz Carlton, they aim to develop team members up.  Or, out.  

Quickly.

Ritz Carlton staffers are expected to be passionate advocates for their brand and culture.  During a year-long onboarding process, associates move from “hearing it” in their first four months, to “believing it” in months five and six, to “living it” where they personalize, internalize, and promote the Ritz Carlton brand.

Ritz Carlton teaches a five-step process when a guest has a problem.  

Step 1: Dream it.  Each associate is entrusted to spend up to $2,000 per guest, per day to come up with creative solutions to solve guest frustrations.

Step 2: Mean it.  Focus on repairing the relationship.

Step 3: Own it.  

Step 4: Resolve it.  Stay with it until the guest is satisfied.

Step 5: Record it.  Capture the lessons learned.

Driving service excellence begins with a full commitment from top leadership.  Leadership must live it every single day.  

But leadership is not reserved for just the C-suite.  At Ritz Carlton, all associates are expected to be leaders as captured by their slogan:  “Every customer.  Every time.  Always.”

More tomorrow.

______________________

Reflection:  How might my organization learn from Ritz Carlton’s five-step process to address client issues?

Action:  Make this an agenda item at an upcoming team meeting.

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