More on "We" Relationships With Customers

I love the viral nature of the internet.  On Monday, I did a post on the new book, We: The Ideal Customer Relationship. Yesterday, I got an e mail from Frank Rowe of PeopleMetrics, telling me that he enjoyed the post and sending me a press release of the results of a study his company has just completed.  Check it out…

FOR IMMEDIATE RELEASE:

Contact:
Frank Rowe – VP
PeopleMetrics
Tel: 215.979.8038
Fax: 215.979.8049
frowe@people-metrics.com
www.people-metrics.com

For Restaurant Chains, Emotional Connection and Profits Do Mix, Study Finds

Philadelphia, November 8, 2007--- For casual-dining chains like Applebee's and Red Lobster to succeed, getting the food right is just the first step.  A new survey by a leading customer research firm has found that the bottom line is often most influenced when these restaurants make an emotional connection with customers.

“These findings are very compelling,” noted Kate Feather, PeopleMetrics (www.people-metrics.com) Executive Vice President who led the study, “restaurant chains that make customers feel emotionally connected to the dining experience far outperform those chains that don’t.”

In its study, PeopleMetrics evaluated Customer Engagement levels of recent diners of nearly a dozen national restaurant chains, including Chili’s, Applebee’s, Olive Garden, and Red Lobster. PeopleMetrics measure of Customer Engagement combines traditional loyalty metrics with an emotional component.  The result is that highly engaged customers are found to be loyal, go out of their way to do business with, say good things about, and feel passion, even love, for the brand and experience.

Comparing the Customer Engagement scores of 1,200 recent diners with the financial performance of publicly traded restaurant chains revealed a strong correlation. Restaurant chains with high customer-engagement scores far outperformed low-scoring counterparts -- including an average gross margin of 29 percent compared to -12 percent -- and EPS growth of 75 percent to -50 percent for lower-performing chains. Financial metrics included return on assets and equity, gross margins and earnings per share (EPS).

While Customer Engagement ties to financial performance in restaurant chains, the study also considered what chains can do to build a more engaged customer base.

“We found operators need to do a few things well to increase Customer Engagement,” Ms. Feather noted, “They need to hire and retain employees who make the dining experience fun. But most important, restaurants who can quickly and effectively resolve customer concerns are the clear winners.”

Results from the Casual Dining Sector research are part of PeopleMetrics broader study measuring Customer Engagement and financial performance across the Retail, Banking and Hotel industries.

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The common sense point here is clear.  Whether you call it a “We” relationship, or “customer engagement”, it is good business to treat customers as partners in your business.

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blog: www.SuccessCommonSense.com for common sense advice on becoming the career and life success you are meant to be and to get a copy of my new ebook Star Power: Common Sense Ideas for Career and Life Success.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.

Comments

[Agenda Software]

Customers are every thing.

WE should be good to customers and we should show them mercy and faith. ;)