Alignment, Alignment, Alignment

Why in the world would General Motors tie employee bonuses to customer loyalty? According to a Motor Trend article, “The better the overall customer retention GM has with its four brands, the higher the bonuses will be.”

It’s about alignment. In the world of positive motivation, you get what you reward. You want higher customer retention? Then tie a substantial portion of your employees’ pay to retention. You want a responsiveness culture? Then tie bonuses to responsiveness metrics and service recovery performance. You want to increase annual dollars spent by existing customers? Then incent those in the organization on retention, cross-selling, and up-selling.

It’s about alignment. If you align organizational goals with reward and recognition systems, you have a better chance of achieving those goals. And while this might seem simplistic, take this test. Look at a copy of your organization’s Top Organizational Goals for this year. Then ask “What is the financial impact on staff if these specific goals are achieved…or are not achieved?”

If the typical executive, the typical manager, the typical staff person will get paid roughly the same whether those goals are achieved or not, then there’s not sufficient alignment…and there probably won’t be much success.

Remember – you get what you reward.

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

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