Loyalty. It is what we want in all relationships, right?
Client relationships are no different. When we consider the time, effort and overall cost to acquire a customer, one of the most important things we can do is to measure their loyalty on a regular basis. Introduced in 2006, by Fred Reichheld in his book “The Ultimate Question,” the Net Promoter Score® (NPS) has become the de facto standard for measuring loyalty for the best companies in the world. Unfortunately, a vast majority of the compa...
Me: What differentiates your company from the other 22,000 competitors in the marketplace?
CEO: Our service is second to none. We truly value the customer and every interaction we have, our people are trained to make the best of it.
Me: Can you prove that is a differentiator? That your service is superior?
Here are three keys to make sure you understand and can manage your customers’ perception of you and your brand.
1. Use a third-party firm like Butler Street to conduct an NPS® survey. We’ll show you exactly what your customers think. Much like having a “wing man” doing recon, the customer is much more likely to be open and candid to a third party. 2. Reach out via phone to each customer that responded to the survey. It will clearly differentiate your organization from a vast majority of comp...
In this new world of big data, machine learning and predictive analytics, there is simply no excuse to not have an early detection system associated with client risk that provides actionable insights to prevent potential defections before they happen.
Unfortunately, these are just the symptoms. It is important we get to the root cause of failure. Sadly, these failures all had the same root cause... They all lost the voice of the customer—the only voice that matters.
Think about it. It has been determined that an account is big enough to warrant an on-site or dedicated client services team which increases costs and because of the revenue associated with the account, deep discounts are offered and ultimately, the business has a lower gross margin. All of this in the name of volume.
Now, having grown up in sales, specializing on selling these strategic/key accounts, I can tell you first hand if done properly, they can be a catalyst for profitable growth....
It starts with building a revenue plan customer by customer at the grass-roots level. In order to build a plan you have to know how your customer feels about you. Revenue trends are only part of the story. If you don’t regularly survey your customers through a Net Promoter Score (NPS) survey to measure client loyalty, then you are starting off at a disadvantage. Once an NPS survey is complete, you can cross- reference the data with the following: