Written by: Kushal Dev | Co-founder, Customer Guru
Do you know why your customers like or dislike doing business with you?
The connected world has offered immense opportunities for all of us to grow. A key criteria for growth is customer acquisition, for which we spend a lot on marketing, discounts, loyalty programs, 24 hours sale….its endless! But is this sufficient? Imagine a customer getting such poor experience that she defects even faster than she was lured through these “smart” customer acquisition strategies.
Customers should be given such stellar experience that they become loyal to you and stick around. Losing customers at a rate faster than acquiring new ones will only lead to a shrunk customer base and decline in profit.
Both Loyal (read “promoters” according to Net Promoter Score® philosophy) and not so loyal customers (read detractors) have their own lifecycle and impact the bottomline accordingly
Since loyal customers lead to lower costs, happier employees and repeat business, its imperative that companies focus on setting a customer centric culture in their organisation.
Like any any other change this cultural shift may also face some resistance from within the company. To ensure its adoption is seamless a simple and easy to understand metric like Net Promoter Score® (NPS) goes a long way. NPS helps you quantify and measure customer loyalty.
As Peter Drucker rightly puts it
NPS with its simplicity, shifts the focus from analyzing the score to the WHY! It makes it easy to question the reason behind this score and makes the different departments in your organisation action oriented rather than the research oriented.
You can establish a flow of information across the organisation creating a social environment around it. Individuals, teams, departments and different entities within an organisation can use it as a mirror to evaluate and improve themselves.
When the teams understand how their actions directly impact customer loyalty they stop waiting for the higher management to show them the way and start thinking and taking action on how to improve customer loyalty themselves.
Reach Kushal at email@example.com