Many people think that “the customer comes first.” But, in reality, employees should come first and customers should come second. Why does that help companies retain customers?
Archive | May 11, 2012
As Fred Reichheld pointed out in "The Loyalty Effect" long ago, financial performance comes from customer retention, because it is less expensive to keep your existing customers than attract new ones and it is easier to sell more products and services to your current customers where you already have a relationship. Reichheld went on to note that strong customer relationships come from long-tenured, engaged, motivated employees—the people who actually keep the customers happy, or, as in the case of many of the airlines, do the opposite.Jeffrey Pfeffer, Thomas D. Dee II Professor of Organizational Behavior at Stanford University's Graduate School of Business