How to Build a Customer-Oriented Workforce
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A customer oriented workforce has many benefits: Not only will your employees work towards the same goal and raise productivity, but customer satisfaction increase customer retention as well as brand loyalty, which in turn lead to a higher return on investment due to repeat customers and the decreased expense of marketing to and attaining new customers.


Additional benefits include:


  • Employees working as a team
  • Employees encouraging one another
  • Sharing of important information
  • An environment when employees tend to help out during crisis period or with problems
  • Employees work together to build quality relationships with customers
  • It can lead to a positive corporate image
  • Increased sales
  • Fewer customer complaints
  • More compassion
  • Positive word-of mouth endorsements
  • More referrals

There are three steps to build a customer oriented workforce:


       1. Goal-setting

The goal-setting technique begins by reminding your employees that customer service quality is important and any actions should support this commitment with an end goal in mind to provide excellent customer service.


        2. Incentives

Goal setting will only work when employees are rewarded for their additional efforts. Reward systems can incorporate pay increases, bonuses or commissions, perks such as a vacation, public achievement announcements, special office space, and much more.


       3.   Advancement

The most successful employees who provide the best customer service should be provided with a special “title” for the month or given a responsibility of training fellow team members, by allowing them to be role models and coaches to others. Since it puts that “achiever” in a position of power and respect, employees strive to be the best and are excited once they are given the opportunity to teach others to share their success strategies.


You will now learn in more detail about the financial benefits of prioritizing on offering exceptional customer service.


Customer Lifetime Value


Customer Lifetime Value is a term that describes a monetary figure that represents the profit stream that a customer generates over his or her lifetime to a business. The lifetime of a customer is not a person’s entire life in terms of time, but constitutes only the time a person is a customer of the business and does not account for the time that person was a customer of a competitor or once that customer is lost to a competitor and no longer purchases any products or service from the business. In addition, the time that a person moves and changes his or her address is not counted in a customer’s lifetime value either. Lifetime value can be calculated either for each individual customer or for certain market segments.

The key figures in calculating lifetime value are

  • Revenues
  • Costs
  • Retention rate
  • Visits or purchases per time period.
  • Maintenance cost of the database.

The goal is to increase revenues and the average lifetime values of customers.

RFM Analysis


RFM Analysis stands for

  • Recency: The date of a customer’s last purchase
  • Frequency: The number of purchases within a specified period
  • Monetary: The level of monetary expenditures for a firm.

To begin RFM Analysis each customer is assigned to a code number based on their RFM.

With these values, calculations and evaluations can be made about customer’s or a market segment’s RFM and lifetime value. The results can be used to make decisions regarding various marketing strategies, including product modification, brand extension programs, and other marketing programs as well as individual customer service to build brand loyalty.