Happy Employees = Happy Customers And Big Profits

Back in the 1990’s, Taco Bell conducted an eye-opening analysis that proves real profits are definitely made on the front lines.   The fast-food giant examined the differences among servers with high and low turnover rates.  The findings were astonishing!

Sales were double and profits were 55% higher in the stores where employee turnover was the lowest,  compared with those stores where employee turnover was the highest.  Just think about that and the implications of the study.

Even though every store across the nation had the same advertising, the same products, and the same pricing, the proftis in each store varied tremendously.    What accounted for the difference?

One thing:  The happiness or job satisfaction of the employee.   The more satisfied the front-line employee tended to be, the longer he stayed with the company.   And the longer he stayed with the company, the greater level of customer service he tended to give.  And that higher level of service turned into much higher profits for the store.

What’s the lesson for all of us?  Customer service starts with your employees.  Treat them well and they’ll treat your customers and your bottom line real well.