NPS Blog

Category Archives: Loyalty economics

The calculations that give you a true understanding of the cost-benefit of investing in different segments of your customer base.

Podcast: What Is a Customer Worth?

Large companies tend to focus on traditional financial forecasts—earnings estimates, sales targets and so forth. After all, it’s how the market measures their value and whether they’re worthy of investment. The intense pressures to meet these goals can cause some … Continue reading

Podcast: Tapping into Customers’ Deepest Needs

A lot of companies find themselves a situation in which their competitors are increasingly adding value to their products, while they’re struggling to figure out which features and services might move the needle with customers. The leaders of these companies … Continue reading

Set Perfection as the Goal: Leadership Lessons from Former Vanguard CEO Jack Brennan

It’s common wisdom that your goals should be achievable. In fact, a popular goal-setting acronym, SMART, holds that goals should be specific, achievable, realistic and time-bound. (In some permutations, “relevant” is substituted for realistic.) Jack Brennan, though, suggests almost the … Continue reading

Assessing Your Net Promoter System: How VimpelCom Set a Roadmap for Improvement

VimpelCom is one of the largest telecom companies in the world, serving 217 million customers globally. It started in Moscow in the 1990s and has grown to cover 14 countries ranging from Italy to Kazakhstan. Yet until a few years … Continue reading

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A rising Net Promoter tide can lift all boats (or sink some)

Fred Reichheld believes that companies are getting better at listening to customers. In a recent LinkedIn blog post, he describes how customer feedback is a guiding force at Uber, Harry’s and Airbnb. I’m sure many read the blog post and … Continue reading

Medallia webinar replay: Harnessing the economics of customer loyalty

Loyalty leaders know how valuable their most valuable customers are. It’s a simple but powerful concept. In a webinar last week, I explained how companies can use loyalty economics to make investments that ultimately build loyalty and sustain growth. By … Continue reading

Medallia webinar: What are the economics of customer loyalty?

Doing right by your customers so that they stay loyal and share their experiences sounds intuitive. But what is it really worth? Many companies grapple with this question. After all, your best loyal customers stay longer, spend more, cost less … Continue reading

Birchbox: Unboxing a fantastic customer experience

I’ve been getting a box in the mail every month this year. Inside I usually find four or five samples of products I’ve never heard of, like Billy Jealousy Liquid Sand Exfoliating Facial Cleanser or PARLOR Re-Workable Hold Paste or … Continue reading

To improve it, start by measuring it

One of the best pieces of advice I ever received came from my uncle, a world-class physicist who later became a business executive. My uncle and his wife graciously took me in for seven years while I was a student … Continue reading

Why bank customers are so disloyal (and why banks want to change that)

Last year, almost 40% of American customers bought at least one new product from a bank. Despite bankers’ intense focus on cross-selling, only half made that purchase from their primary bank. This pattern, more or less, was repeated in more … Continue reading

Why your banking experience is likely to get better

Banks are working hard to cultivate loyalty just to keep pace in an ultra-competitive market. In the process, they’re doing many things right, as I explain in my latest post on LinkedIn Pulse. They’re using technology to make easy transactions … Continue reading

No gains from your loyal customers? Five questions to ask

If your company has earned high Net Promoter Scores, it’s reasonable to expect that you’ll outperform your competition. But sometimes that doesn’t happen—at least not right away. If you’re wondering why your strong service hasn’t yielded better-than-average performance, here are … Continue reading

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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 … Continue reading

One number that says it all

This blog post originally appeared on LinkedIn.  Analysts use many yardsticks to predict the direction of a company’s stock price—price-to-earnings ratios, dividend payout ratios, EBITDA and so on. Some are so complicated: Try calculating a company’s weighted average cost of … Continue reading

Your customers aren’t yours

This post originally appeared on LinkedIn.  In certain businesses with limited competition or long-term contracts, executives can easily delude themselves into thinking they have captive customers. They might even be partly right: Many of their customers may use their services … Continue reading