The three main benefits that a company will get from improving customer satisfaction by using good Customer Service practices are retention, related sales and referrals. Let us see how each of these factors can be a major contributor to the profitability of the company.

Retention

The first sale is the toughest to achieve, ask any salesman and he is bound to agree. However once the level of trust is established by having sold a quality product to a customer it is easier to make the second sale to the same customer. This is a natural human tendency. You stick with a product or service that has been giving you consistent performance.

For example if the cab company that you call to pick you up from the airport always has the car waiting for you when you come outside you will be a satisfied customer. You will not decide to pick up the phone and call their rival on a whim, as you are already happy with the service being provided to you. This is called customer retention. A business contact management software allows your company to trace patterns in your customer’s purchases.

Related Sales

A free online CRM allows your company to contact the satisfied customer with a product. This makes it easier for you to make related sales to existing customers. The trust is already there between the company and the customer making it that much simpler to have the customer buy another product which is related to the first one from the same company.

For instance a hotel will note that a particular customer visits them each year for a week in the summer. They also notice that the customer uses the hotel spa regularly during the visits. If they decide to give the customer an option to upgrade to a better room with some free coupons to the spa in the hotel there is a good chance that the customer may take them up on it.

Referrals

If you are happy with your product or service and find yourself in conversation with a friend who is not it is human nature to tell him about your product or service. In the above example of the cab airport pick up imagine that the satisfied customer is talking with a friend. The friend complains about how difficult it is to get a good cab service he is bound to give him the number for his own cab company.

A web contact management system allows your satisfied customers to give you names of friends who would be interested in the same product or service which they bought. These kind of referred clients already come with some kind of expectations and trust. So it is easier to sell to such customers.

>> Security is of course the biggest concern. Though banks use secure servers (look for https instead of http in the website address) for their customers for online banking, phishing frauds, fraudulent websites, and so on are things to beware of. Also remember to make your online transactions more secure by following security guidelines and using the virtual keyboard for typing the PIN, password and so on.

>> With a bricks and mortar bank, if you have any doubts or questions you can have them addressed by a real person. With online banking you will be directed to help page or to a helpline number. This can be irritating to say the least.

>> If you want to access your bank through a public computer then this could mean that your sensitive data may be visible to others, so this is best done on a machine that only you or trusted people at home use.

>> The popular times of day when most people want to access their bank online may mean that the website is slow to respond at the time.

>> Websites also have down time and this may be inconvenient if you have urgent business to transact online. This is however not that much of a concern since most bank websites will issue advance notice to this effect if maintenance work is to be done; down time is usually scheduled and limited.

>> With online banking you need to keep track of certain numbers, passwords and other sensitive information that could be dangerous if divulged. You should either commit these to memory or store them in a secure place, which cannot be compromised. Forgetting or mislaying this sensitive information may mean a lengthy process for retrieval or change.

So clearly there are advantages and disadvantages to internet banking. However so long as you take all precautions to keep your transactions online secure, there is no reason why you should not enjoy all of the advantages and none of the disadvantages!

In the same vein as my recent post about online payment solutions and options in this post as well, I thought I would talk about online banking solutions. We have long become used to getting money at the ATM rather than going to the bank during working hours to withdraw money. This had revolutionized banking to a very great extent. Similarly online or internet banking or e-banking as it is also called, has further simplified and streamlined banking for us, in many different ways such as –

Online banking has many of the same advantages as online shopping – You can do it from the convenience of your home, saving time, effort and money in not having to physically go to the bank. You can do it at your own time, not having to curtail your banking to within banking hours which can be inconvenient and even impossible for working people.

You can do more with online banking – You can transact with several banks simultaneously without having to visit each physically. You can also ‘visit’ several different departments online for different requirements, which would be difficult and time consuming in reality. You can trade in the stock market, invest in or sell stocks, bonds and other instruments at will.

You can keep a close track of payments received into your account, debits created by payments you have made. You can keep a close eye on credit card expenditures, so that you are not in for a rude shock when the statement arrives. If there is any fraudulent activity, you can detect it with if you are regular with net banking.

There are many benefits for the bank as well – When you do your banking transactions online – transfer of amounts from one to another account, making bill and other payments, creating your own investments and so on, there is that much less work for the bank personnel or employees – less to pay in terms of employee salaries then. So since the banks are making savings, these can in turn be passed on to the customers, who may find that transacting online may be cheaper and may attract fewer service charges.

So as you can see the benefits of banking online are many. Are there also some disadvantages or things to beware of with online banking; we take a look at that in our next post.

Apart from Bank Transfers across the world, a whole set of online solutions have cropped up. The chief among these is Paypal. It is owned by eBay since 2002. Google Checkout is another similar payment gateway though not as popular and as widely used as Paypal. Checkout by Amazon is the new kid on the block offering stiff competition to the existing stalwarts. Credit cards are another very popular payment mechanism for online trades. Make sure you don’t fall trap to any phishing scams though.

Many other private companies also offer funds transfer facilities. One must look into the background and take some time out to research them online and offline before entrusting them with hard earned money. Transferring funds across the globe is big business today with companies charging as high as upto 4% in transfer fees. Do your research and make sure you pick the one most suitable to your particular needs and one that charges reasonably for sending and receiving payments.

That’s where sites like myfundingsource.com come to the rescue. They help folks with bad, just fair or even no credit get a credit card and start to build a good credit history. People with great credit history of course have many more options.

On the website you can monitor credit report. If you are trying to get funding for a loan, you will need to know your credit scores. The website helps you to know and understand your credit scores. Building a good credit score can be tough when nobody is ready to issue you a credit card or loan. This site offers easy to get credit cards with minimal or no credit checks. Their annual fees are reasonable. If you need ongoing access to cash or a line of credit, their MerchantCard would be suitable.

If you are looking to build professional credit for your business, you can avail of their Commercial Credit Builder Program. They can help you build positive business credit in 4-8 months as against 2-5 years. The charges are $49.95 for a 10 week trial, followed by a monthly charge of $19.95 if you continue availing their service.

So they have multiple options for people with bad or no credit history to change things and move in the other direction.

1. Indra Nooyi, Chairman and CEO PepsiCo is the most powerful businesswoman in the world. She has come a long way from her native India. Not only has she successfully contended with declining sales of soft drinks manufactured by her company, she has looked at providing the consumer with healthier options such as orange juice fortified with omega 3 fatty acid.
2. Irene Rosenfeld, Chairman and CEO of Kraft Foods, has used effective and innovative strategies such as empowering local managers in developing countries, and launching new and convenient products to keep and enhance her company’s market position
3. Pat Woertz Chairman, President, and CEO Archer Daniels Midland (ADM) She made sure that her company known as the “supermarket to the world” held its own even in the midst of higher corn costs and doubts about ethanol.
4. Anne Mulcahy, Chairman and CEO Xerox (XRX) is largely given the credit for a full scale turnaround of her company since taking it over. Xerox is at no. 3 in the Fortune 500 companies in terms of profit growth over 5 years. Sounds pretty impressive to me.
5. Angela Braly, President and CEO Wellpoint (WLP) Wellpoint is the largest woman led company in the US in terms of revenue.
6. Andrea Jung, Chairman and CEO Avon Products (AVP) She is also a member on the Apple board (the only female one), and is responsible for the stock price going up 15% among other things
7. Susan Arnold, President, Global Business Units Procter & Gamble (PNG) She is tipped to be the dark horse who may run the company one day
8. Oprah Winfrey, Chairman Harpo – After her TV shows and magazine it is now a new network that will target 70 million homes
9. Brenda Barnes, Chairman and CEO Sara Lee (SLE) – responsible for shedding underperforming units that accounted for 40% of revenue.
10. Ursula Burns, President Xerox (XRX) heir apparent to the Xerox throne.

The problems identified by the new president and his team that they will be seeking to address are:

• Wages are stagnant as prices rise
• Tax cuts are benefitting the wealthy instead of the middle class

So the president and his vice president aim to jump start the economy by

· Enact a Windfall Profits Tax to Provide a $1,000 Emergency Energy Rebate to American Families

· Provide $50 billion to Jumpstart the Economy and Prevent 1 Million Americans from Losing Their Jobs

Obama and Biden aim to cut taxes by $1000 for working families to offset the payroll tax they pay and provide the middle class American tax relief by:

• Creating a new “Making Work Pay” tax credit of up to $500 per person, or $1,000 per working family. The “Making Work Pay” tax credit will completely eliminate income taxes for 10 million Americans.

· Eliminate Income Taxes for Seniors Making Less than $50,000

· Simplifying tax filings for middle class Americans.

Trade, another area where the US is perceived to be lagging will receive a shot in the arm by

• amending the North American Free Trade Agreement,
• ending tax breaks for companies that outsource jobs to other countries
• rewarding companies that support American workers.

Obama and his Veep also have a Green Agenda and want to create new jobs

• By investing in the manufacturing sector, they want to create 5 million new green jobs!
• New Jobs Through National Infrastructure Investment
• Increasing federal support for research, technology and innovation for companies and universities so that American families can lead the world in creating new advanced jobs and products.
• Protecting small businesses

What is also a priority is to protect the home owner and crack down on mortgage fraud. A universal mortgage credit is sought to be created, more accountability is sought to be enforced in the subprime mortgage industry, accurate loan disclosure is sought and bankruptcy loopholes for mortgage companies are sought to be plugged.

For more details about their Economic Agenda, look here.

The company to record the highest growth was NutriSystem, which is a strong indicator of America’s preoccupation with weight loss, body image and dieting. The company reported a stunning 433% earnings per share growth with 225% revenue growth and total return of 244%. NutriSystem sells pre-packaged (heat and eat) meals from their website and ship them to your door. They have an ongoing deal that will supply one weeks free food with every 4 week order. This amounts to $280 for 5 weeks food. In an age where foods are chosen according taste, price, and convenience – it should come as no surprise that NutriSystem is so popular.

Hansen Naturals the Energy-drinks maker with Monster brands had the second highest growth with a 145% earnings per share growth, a revenue growth of 80% and total return of 139%.

The seven-year-old oil-and-gas firm operating in four states, Arena Resources, had the third highest growth with a 140% earnings per share growth, a revenue growth of165% and total return of 100%. Pretty good considering the rate at which fuel costs are climbing!

Intuitive Surgical manufacture Surgical-robot products which let doctors operate through tiny incisions and this company also had very substantial growth, a 123% earnings per share growth, a revenue growth of 62% and total return of 94%.

Owing itself largely to high demand for strong light alloys for Rolls Royce jet engines, the metal producer Titanium metals also saw some very healthy growth with 151% earnings per share growth, a revenue growth of 48% and total return of 140%.

The hype and anticipation generated by the iPhone as well as good laptop sales made Apple another high growth success story with 149% earnings per share growth, a revenue growth of 48% and total return of 140%.

Apparently Google is also in the business of making millionaires (out of its stock holders). The stock broke the $700 mark! And why is it the best company to work for? Stock options! To 99% of their employees! With revenues of ($ millions) 10,605 in 2006, it does sound like the best place to work, with 8134 employees in the US and 60% growth in a year!

Headquartered in Livonia MI, Quicken Loans is supposed to be the second best company to work for and in the words of an employee is an ethically driven online mortgage lender. 2006 revenues were 602 million.

Wegmans food Markets, headquartered in Rochester NY had the annual revenue of 4,119 million in 2006 and is the second best place to work for. A family owned business, the chain has 71 stores and was named the best supermarket in 2007.

What recession?! Edward Jones, the brokerage firm headquartered in St. Louis MO gave 70% of their employees a 6.5% raise last year as a 1000 new offices opened out over the US! New jobs created in one year were 1182! Good going!

Genetech is a biotech firm that is well known for its perks so it is an obvious choice when deciding which are the best companies to work for. With over 10000 employees already, the company created 871 new jobs in a year. Sample one of their unusual perks: Come to work by bicycle, on foot, via public transportation, or in a carpool and you get a subsidy of $4 a day.

Cisco Systems is the next best, for certain employee friendly innovations such as CEO John Chambers’ blog On My Mind which invites employee ideas. The San Jose, CA company created 4700 new jobs in a year.

As any coffee lover knows, Starbucks is an institution (I love it for the way any Starbucks outlet smells) but apparently it is also a great place to work for all its 134,013 employees with 2519 jobs created in a year.

Qualcomm, the popular on site primary care clinic gave new employees stock options and 100% health insurance coverage.

While the stockmarket was not kind of Goldman Sachs, the company has record sales and profits so all was well for the employees.

At number 10, Methodist Hospital System added a new program called No one dies alone in which employees volunteer time with terminal patients. Hmmm can’t be very uplifting for the employees.

So lots of people there with every reason to anticipate another day at work. What about you? What do you like best about your job?