Do you wish you could sell more while mailing less? Or, improve assistance while reducing costs? Or, reduce risk when manufacture decisions? Benchmarking will help you do all that and more. So why are you not benchmarking today? It's simple. Implementing a benchmarking schedule is overwhelming.
Abortions Center
Why Bother?
It starts with volumes of data, tons of theories, and the nagging understanding that you need expert intervention. Next comes hours of filtering through the statistics before "why bother?" aborts the program. In a few months or years, man will ask, "do you have a benchmarking program?' and you will respond with "we tried it, but it didn't work."
Do You Know Which Customers are Rising Stars and Which Ones Are Trying to Rest in Peace?
Let's start with the "why bother?" question. Would you bother with a schedule that helped profile customers so you could mail more effectively? There are six types of customers: Newbies, Rising Stars, Platinum, Falling Stars, business transaction Hunters, and Rest in Peace. Each type responds differently and mailing by profile increases response. Wouldn't it be nice if there were magic rules that universally recognize a customer's profile? Like, customers who haven't ordered in 12 months are Falling Stars. Or, customers who ordered within the last 30 days are Platinum. But what if that order, the one located yesterday was that customer's last? Wouldn't it be nice to know before you mailed them six more catalogs?
There are basic rules that apply universally, but to maximize your return, you need to know the rules that apply to your definite customers. How does a buyer move from Newbie to Platinum? If you knew, then you could start the conversion process with the first order. How many Newbies go directly to Rest in Peace? Would a shift in marketing and assistance change their pattern? Without measuring and monitoring buying patterns, you'll never know.
My Marketing schedule is Great! Why Would I Benchmark?
But, what if maximizing marketing is your specialty? Don't worry; benchmarking can help your operations, too. Would you bother with a schedule that measures your assistance levels and improves buyer satisfaction? We all know that pleasure is important, but quantifying it seems impossible. Not only is it possible, unlike activities that need a stunt double, you can try this at home! In fact, it is great if you do. You can skip the consultant (Gasp! Did I just say that?), the high end software, and the statistician. You are the one that lives with the results and you should understand every aspect of your business. The charm of benchmarking is hidden treasures that appear in odd places. Outsiders may not recognize the significance, but you will.
When you have results, you may determine to hire a call center, outsource your fulfillment, or bring it all in-house. You will be able to make these decisions because you will know the costs connected with these services and their succeed on buyer loyalty. If you determine to outsource, you will also be able to monitor performance and insure capability service.
Nothing to Fear...
Now, why are you not benchmarking? In Franklin D. Roosevelt's inaugural address he said "...let me avow my firm confidence that the only thing we have to fear is fear itself - nameless, unreasoning, unjustified terror which paralyzes needed efforts..." Don't let the fear of benchmarking paralyze the process.
But my customers expect fast, free, and friendly!
It often seems that customers want all fast, free, and kindly when you recapitulate their complaints. The reality is that most customers are trained to expect poor service, so a good shopping perceive is a welcome surprise. Of course, expectations are distinct for distinct associates so you have to find your customers' definite needs. Before you make your next examine or make a focus group, try benchmarking. It is economical, effective, and universal. It crosses channels, departments, and divisions enhancing marketing and operations.
The most benefit of benchmarking is that it quantifies areas often carefully intangible. Many associates treat buyer assistance from the call town to fulfillment as a cost of doing business. They miss opportunities to build relationships and improve marketing by reducing service. change requests are met with "Show me the Roi" responses. Benchmarking can deliver the return on investment (Roi) facts while enhancing marketing and operations.
Take the Wec Benchmarking Challenge
If you are still skeptical of how benchmarking can deliver, take the Wec Benchmarking challenge. There are two parts to it, expanding sales, and reducing costs. It doesn't need sophisticated technology, added investments, or a long term project. It does carry a warning: Once you have tried benchmarking, it can be addictive for associates wanting to growth and profitability.
Part One: expanding Sales
Choose 2,000 - 4,000 of your best customers and isolate them with an A-B split. Flag the A customers in your order administration law as "Platinum". Set it up so every perceive point identifies these customers as the best. Csr's should see their status whenever they way the customer's account. Packing lists should also recognize them. Tell every person in the club that you are focusing on enhancing relations with your best customers. Make sure your team knows how to recognize the platinum customers in your system. Remind them about your focus every week and ask for feedback. Continue marketing as usual. Monitor sales for the two segments weekly over a twelve week period. You will find that A customers have a greater value than the B ones. Now you have facts to quantify assistance enhancements.
Part Two: Reducing Costs
Choose an area where workload is nearing or exceeding capacity. For this example, we will use the call center. Have a meeting with the agents and explicate that you are working on a plan to improve their work environment. Ask them to document their challenges and any suggestions for improvement. Tell them that you will be monitoring everyone's work load and posting the results. Continue monitoring for a twelve week period. Each week select a easy improvement recommendation and implement it. You will find that productivity and morale increase, reducing the need for added personnel.
Once you get started and see the benefits, benchmarking will come to be your best growth and profitability strategy.
Warning : Benchmarking is highly addictive for results oriented executives. Use with caution.
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