Assuming the title didn’t make you fall asleep, I wanted to welcome you to an unusual blog post – we’re going to analyze an analyst’s blog posting!
In an analyst’s earnings preview for ProLogis (a provider of distribution facilities), Zacks Equity Research projects ProLogis’ estimate for year-over-year earnings growth, revenues, etc.
What caught my eye was this statement – “Customer retention in both the direct owned and investment management portfolios during the quarter was over 87% during the reported quarter.”
It was one small mention of “customer retention,” but this is a BIG WIN folks!
When companies and analysts are actively sharing and analyzing customer retention as part of their earnings reports and using customer retention as a key barometer of business performance, that’s GREAT news!
That means businesses are seeing the link – customer retention and the bottom line. That means companies will look to drive that retention number higher. That means (we hope) they’ll invest in the people, processes, technology, and programs that help to make the customer more loyal.
That means that some large corporations truly get the financial reason to care for the customer. Now what they do with that understanding is still a question. But if they understand the cause and effect relationship between retention and earnings, let’s hope they will also understand the cause and effect relationship between customer service and retention.
Can you prove that cause and effect relationship between customer service and retention in your business? If so, share that proof with your leaders, and help to make them more aware of how you can improve your bottom line by improving your customer service.
Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/
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