Thursday, November 23, 2006

Values-->Employee satisfaction-->Revenue

There are a bunch of studies pointing out that when employee satisfaction is high so is customer retention. It doesn't take a huge logical leap to see, therefore, that it might pay in revenue and reduced marketing costs to make sure that employees are satisfied--and that the right core values might be a big piece of that puzzle. The causal link is straightforward:

The Right Core Value, Driven through the PxP Organization-->Satisfied Employees-->Great Customer Service and CRM--> Customer Retention--> Increased Sales and Less need to Acquire Customers (reduce marketing cost).

While I haven't yet checked it out, I'm told that TARP has studies that indicate this holds true particularly for family-owned businesses, in which the core values are steadfast and honored, and in which the fundamental drive is to create longevity rather than quarter on quarter returns.

1 comment:

Anonymous said...

This was short and simple but very informative! every business man and CEO should know the importance of this. i have already shard this with face book!


Sample Employee Questionnaire