Customer Value is Company Value

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Top Takeaways:

• NPS refers not only to the Net Promoter Score, but also to a system that is a set of behaviors, actions and technology that provides customer feedback directly to frontline employees. While the score itself is important, the bigger impact is on frontline employee learning, making customers feel as though their voice is heard and valued.
• When asking for customer feedback, model your approach off of NPS and Enterprise Rent-A-Car’s original Service Quality Index: ask a single question with a simple metric, then an open-ended follow-up question (“why?”) and finally, follow up on the feedback you receive.
• In his recent Harvard Business Review article, Rob identified four strategies companies can use to achieve consistent and sustained growth in customer value. They are as follows:
  • Develop robust customer-value management processes and tools.
  • Combine design thinking with loyalty-earning technologies.
  • Organize around customer needs.
  • Lead for loyalty.
• The value of your customer is the value of your company.
• The best way to grow through customers varies from company to company. For some, acquiring new customers and making sure they are a good fit is the best method of growth. For others, focusing on retaining existing customers may be a better path.
• Companies most often underestimate the value of attaining the right customers in the first place.
• Organize your company around customer needs instead of functional teams and processes. This will eliminate unproductive internal politics and competition for resources that only end up hurting the customer.
• The most important objective for any business should be to grow the value of its customer base. To that end, every individual should understand how they can contribute to and enhance that value.

Quotes:

“The most important objective for a business should be to grow the value of its customer base.”

“Create a shared vision and then free people to pursue that vision. Create an environment where they have a voice and have the ability to shape the way they deliver for customers.”

“Rearrange your organization’s politics so they’re aligned with customer outcomes instead of internal objectives.”

About:

Rob Markey is a partner at Bain & Company and a leader in its Customer Strategy and Marketing practice. He also leads the NPS Loyalty Forum and co-authored The Ultimate Question 2.0: How Net Promoter Companies Thrive in a Customer-Driven World.

Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and your host of Amazing Business Radio.

This episode of Amazing Business Radio with Shep Hyken answers the following questions … and more:

1. How can I make my company more profitable by focusing on customers?
2. Is it more profitable to acquire new customers or retain old customers?
3. How can I create a better customer experience?
4. How does the employee experience affect the customer experience?
5. How do I get customer feedback and what should I do with it?
6. How can I use NPS (Net Promoter Score) to improve my customer service?