Summary of The Ownership Quotient
Putting the Service Profit Chain to Work for Unbeatable Competitive Advantage
What would your company be like if you customers and employees felt like they owned it?
Harvard Business School professors James L. Heskett and Joe Wheeler and customer service consultant W. Earl Sasser ask what would your company be like if your customers and employees felt as if they owned it? A widely distributed sense of ownership drastically improves service while boosting commitment and engagement. Customers who act and feel as if they own a company are worth much more to the business than their disengaged, price-sensitive counterparts. Committed “employee-owners” promote brand loyalty, offer valuable feedback and improve your company’s effectiveness and customer service. How do you increase your “ownership quotient,” the percentage of your staff members and clients who feel a personal stake in your products or services? Not everyone will come on board, so determine which types of customers to cultivate. Decide which corporate goals to prioritize and which customer segments share those values. This may entail turning lesser customers away, but each “customer-owner” you recruit will pay dividends. IBM and Victoria’s Secret have taken this approach, retooling their operations and establishing market leadership. On average, their satisfied customers generate 23% more revenue, not only by returning consistently, but also by spreading the good word about their business. Leaders who are committed to recruiting and retaining employee-owners can easily customize their customers’ experiences and their response to service issues. When each employee feels like he or she has a stake in the firm’s success, commercial interactions become more than just the source of a paycheck or the provision of a service. When everyone shares a sense of purpose, your firm can anticipate challenges and reach new heights. Companies worldwide have adopted this strategy, and the authors provide insightful case studies of the ones that implemented it best. getAbstract recommends their manual to business owners and managers who want to maximize their most important advocates: their customers and employees.
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