I recently came across a posting on the website, Beyond Philosophy, which really reinforces the need in our industry to continually focus on people and training. Great customer service will generate revenue and save costs. Many restaurant chains in Asia still undervalue this important issue. Here are some examples to consider.
* According to a Bain & Co. study, a customer is 4 times more likely to defect to a competitor if the problem is service related than price or product related.
* Marketing Metrics found that the probability of selling to an existing customer is 60-70% while the probability of selling to a new prospect is 5-20%.
* A McKinsey report suggests that 70% of buying experiences are based on how the customer feels they are being treated.
* Another study by Bain & Co. found that a 5% reduction in the customer defection rate can increase profits by 5-95%.
* Defaqto Research noted that 55% of customers would pay extra to guarantee a better service.
How is the customer service in your restaurants in Asia? Do you train, track and measure it? Do you have a loyalty index to understand the percentage of your customers who are highly satisfied and will definitely return?
These are important issues to think about in the rapidly growing Asia-Pacific markets.