NPS Blog

What to do when loyalty doesn’t translate into performance

Every now and then, we come across a situation where a company’s customers appear to love it, but where that love doesn’t translate into accelerated revenue growth. This can frustrate and confuse executives at these companies because their high Net Promoter Scores suggest that they’re doing everything right. Their income statements indicate otherwise.

Lasting economic impact results when loyal customers act on their positive feelings by staying longer, buying more products and services, and spreading the word about how the company improves their lives.

It is possible to earn a high degree of goodwill from customers, yet fail to take full advantage of it. The loyalty leader must create conditions that make it easy for loyal customers to act on their love of the company by offering them opportunities to expand their relationships. This requires serving up the right additional products and services at the right prices through the right channels. It requires ensuring customers have compelling stories to tell their friends based on their own experience. A system of constant feedback, learning and action allows a company to understand how to serve its most attractive customers in ways that truly differentiate the company, making it easy to stay longer, buy more and convince their friends to come along.

This simple diagram lays out the process:

The latest installment of our Loyalty Insights series—“Converting loyalty into economic advantage”—explains this in more detail and offers some practical steps for companies that have struggled to turn loyalty into growth. If you’re interested in receiving our Loyalty Insights reports by email, click here.

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