What do you do when your employee turnover rate is 400%? If you are smart, like Total Logistics Inc., you try something new. A U.S. logistics and freight company facing massive turnover (which is typical in the industry), Total Logistics just rolled out a new customer feedback tool that is tied to employee recognition. That’s right. The higher a customer rates the driver, the more points the driver earns toward rewards in a catalog. The results? In five short weeks, a dramatic increase in driver engagement and retention, and a customer satisfaction rating that catapulted from 67% to 87%.
How does it work? After a delivery, an email is sent to the customer asking them to rate their experience on a 1-5 scale. When the customer submits a rating, the employee receives recognition points based on the rating. The data is fed into an online analytics system – along with any customer comments – so Total Logistics can review comments specific to individual employees. When a negative comment about an employee is submitted, it’s treated sensitively and shared with management before the employee sees it, so leaders can use the feedback as a coaching moment.
This solution is not only for the Transportation industry. If you have employees who interact directly with customers, they too can be rated and rewarded for the customer experience they create. It’s a win/win for everyone involved, which may be why U.S. Starbucks stores are starting to jump on the bandwagon. Employees are incented to provide excellent customer service and get immediate feedback, customers experience higher levels of service, and the employer’s turnover issues decrease because recognition drives employee engagement.
JILL, WHAT CAN I DO? Consider following in Total Logistics’ footsteps and tie customer feedback to employee recognition. The tool they use is powered by EmpowerPoints and it’s making a dramatic difference for employees, customers, and Total Logistics’ bottom line, as turnover is a very costly endeavor. If you want to get a seat at the table in your company, the best way is to bring both a problem and a solution to it. This blog is a sign for what to do next, served up on a silver platter.