Often, L&D programs can be seen as strictly a drag on EBITDA. A cost to the organization that is tolerated, and often minimized. Leading organizations have long-since determined that there is a critical connection between servicing the people of your organization, and servicing your customer.
Generating revenue from customers is a given, and so the link between customer service and revenue generation is never questioned. The causation (not correlation) between training and improvement of customer service is, unfortunately, more often questioned. We have seen that empowering your front-line workers, creates a measurable impact with the customer experience, recurring revenue, and referrals.
We all want our counter-service workers to up-sell and cross-sell regularly. We drill this in our regional, store, and shift managers to incentivize and enforce. But perhaps we have been thinking about this behavior incorrectly. Guests will often make impulse purchases based on a positive experience and interaction. The dopamine involved from a positive phrase, a smile, and an individual with deep, immediate knowledge about the menu and products can and will make all of the difference.
VR has been proven to directly increase the confidence of employees by 340% and learning retention rates can be as high as 75% in VR, vs. just 10% for reading or a lecture.
The combination of higher confidence, and higher retention rates, has led to a direct increase in higher sales per hour for restaurants and retailers.
We have extremely narrow margins in the restaurant and retail industries. The CAC (Customer Acquisition Cost) involved to attract and service a customer the first time is shown to be steadily rising over time. One cannot afford to have a negative impression, or sub-par experience at any point in service, otherwise the LTV (lifetime value) of that customer immediately drops.
All too often, we allow customers to train our employees, by learning POS functions in front of the customer, or by failing to have direct, immediate knowledge of the menu. Given the extensive turnover in the industry, this is expected, but not forgivable. By leveraging VR to train on key scenarios BEFORE, they are put in front of the customer, we not only prevent attrition, but increase retention, and thus, LTV, of our customer base.
"Retention rates can be as high as 75% in VR, vs. just 10% for reading or a lecture"
The average restaurant gets 60% of its business from referral campaigns, with 82% saying it is their main source of new customers. Over-delivering on the customer experience, every time they visit, and training to prompt for a referral during service, are two of the most direct ways of increasing customer referrals in your VR training program.
Many referral programs can also be rolled out more immediately, and seamlessly, by leveraging VR to train existing staff on the mechanics of the program, frequently asked questions, and how to ring-in discounts in the POS system.
The bottom line is that VR training is here, and is making a measurable impact on the level of service, lifetime value, and referral revenue driven by restaurants and retailers.