KOA Convention Keynoter Touts the Golden Rule
For author and customer service visionary Fred Reichheld, good business is as easy as following the Golden Rule.
“It’s as simple as treating customers so well that they come back for more, and bring their friends,” Reichheld told more than 500 Kampgrounds of America Inc. (KOA) franchise owners and managers during the keynote session of KOA’s annual International Convention in Savannah, Ga., today (Nov. 8).
Reichheld, the author of the groundbreaking business book “The Ultimate Question – Driving Good Profits and True Growth,” studied several companies that had experienced exceptional growth, including Chick-Fil-A, Southwest Airlines and Enterprise Rent-a-Car. He told KOA franchisees what he found at these companies was a singular dedication to treating customers well, quickly measuring their success and “making good things happen with what they learned.”
Reichheld’s measurement tool, the Net Promoter Score, simple asks customers to rate their stay immediately after receiving their service, as well as ask them how likely they are to recommend the business to a friend. The low scores, or “detractors” are subtracted from the top scores, or “promoters” to arrive at a net promoter score. Reichheld’s new scoring system was adopted by the KOA system this summer as a means to held campground owners improve service to campers.
Reichheld said too many companies focus on “bad profits.”
“They make money by charging extra fees for what should be common service,” he said. “It’s basically businesses screwing people without going to jail. It destroys the humanity of their work force. It’s what has happened in the cable industry, the cell phone industry and in other businesses.”
Reichheld’s system provides KOA owners with immediate customer feedback on a daily basis, allowing them to quickly check progress and correct service problems as they occur.
“Converting a passive customer to a true promoter increases their value to your business by a factor of three,” Reichheld said. “A good name definitely can drive profitable growth.”
He said sharing immediate customer feedback with employees is a great way to insure everyone – the owner, customer and employee – can win. “It becomes not about the score, it becomes about the service consistently provided.
“If I leave you with just one thing today,” Reichheld said, “it’s that it can be as simple as following the Golden Rule. Just do unto others as you would have them do unto you – and then measure it.”