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Situation
- Leading U.S. supplier of rental uniform garments
- Provides weekly laundry services and facilities maintenance services
- Over 90 service centers throughout the U.S.
- Facing strong competition in its market
- Experiencing high rate of lost business
- Needed assistance to implement value discipline of "Customer Intimacy"
Objectives
- Identify causes of dissatisfaction in customer relationships
- Identify attributes with largest impact on profit/cost recovery
- Determine attributes causing greatest dissatisfaction
- Determine drivers of customer defection
- Determine current levels of satisfaction
- Develop action plan for change
- Establish customer-focused performance standards
- Provide feedback on customer problem experience and complaint management capabilities
What We Did
- Conducted a Revenue@Risk Baseline Study to assess sources of customer dissatisfaction and key drivers of loyalty
- Conducted an internal assessment of customer service strategy and all customer touch points - leadership, people, process, technology and measurement
- Included development of a strategic action plan with executive team
Conclusions and Actions
- Determined that 26% of the company's revenue was at risk due to pending defections
- Helped create a centralized contact center
- Developed a centralized customer database and contact management system
- Implemented local customer contact functionality at Service Centers
- Linked staff performance measurement to customer satisfaction
- Improved overall problem resolution process (i.e. "why it pays data", problem prevention training)
- Created a "Goodwill Program" (proactive customer contact)
- Implemented all recommendations within 9 months
Business Impact
- Decreased rate of lost business by 15% within 12 months
- One location reported no lost business (down from 37% rate of customer turnover)
- Realized US$8 million in revenue from new initiatives
- Had US$1.28 million direct impact on EBITDA within a 12-month period
- Approximate cost to implement recommendations (including cost of project) was US$500,000
- Realized net ROI of 256% within one year
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