Companies earn "bad profits" from one-third of customers, new Bain & Company research finds
Bain & Company press release 1/19/2006
Companies earn 'bad profits' from one-third of their customers, stifling long-term growth, according to new research from Bain & Company. In contrast, organizations that deliver superior customer experiences more than double their industry growth average.
Tuning into the voice of the customer
Call it the dominance trap: the larger a company's market share, the greater the risk it will take its customers for granted. As the money flows in, management begins confusing customer profitability with customer loyalty, never realizing that the most lucrative buyers may also be the angriest and most alienated. Worse, traditional market research may lead the firm to view customers as statistics. Managers can become so focused on the data that they stop hearing the real voices of their customers.
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One number to grow
Results Brief newsletter 2/24/2004
You can measure customer loyalty by asking your customers a single question: How likely would you be to recommend our company to a friend? By gauging the responses to that single survey question, you can predict how fast your firm will grow relative to its competitors. The percentage of customers enthusiastic enough to refer a friend or colleague - perhaps the strongest sign of customer loyalty - correlates with differences in growth rates among competitors in many industries. By substituting a single question for the complex black box of the typical customer satisfaction survey, companies can actually put consumer survey results to use and focus employees on the task of stimulating growth.
The One Number You Need To Grow
Harvard Business Review 12/1/2003
Companies spend lots of time and money on complex tools to assess customer satisfaction. But they're measuring the wrong thing. The best predictor of top-line growth can usually be captured in a single survey question: Would you recommend this company to a friend?
Loyalty: A Prescription for Cutting Costs
Marketing Management 9/1/2003
In the current downturn, many companies are tightening their belts, but too many are missing their biggest opportunity to keep costs down. Building loyal relationships with customers and other stakeholders can go a long way toward cost reduction. This article examines how retaining your current customers can help you save money.
Tools of the Trade
A new study paints customer relationship management as sort of a corporate stepchild: It's there, but it's not necessarily loved, according to a study by Bain & Co. Among marketing executives worldwide, 78% picked CRM as one of 25 incentive or marketing tools they deployed. In the three years since Bain began including CRM in its survey, it's jumped from the ninth most-frequently cited tool to fourth.
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El efecto fidelidad
Management Herald (Buenos Aires Herald) 4/1/2003
La fuerza oculta para crecer en ventas y ganancias. (Page 3)
Winning customer loyalty is the key to a winning CRM strategy
Ivey Business Journal 3/1/2003
Form follows function, and the one practice that illustrates this truism best of all, perhaps, is customer relationship management. For example, when choosing a CRM technology, realign your organization and processes to fit your customer strategy, and then choose the appropriate technology. As these authors maintain, tailoring the technology to the company's business processes and culture is just as important as tailoring the business processes to the strategy.
Cutting Expenses Without Investing In Customers Is a Recipe for Disaster
American Banker 1/24/2003
Today's chief challenge for banks is top-line growth: Between 1993 and 2000 the top 30 U.S. retail banks reported an average 14% growth in deposits, but less than 1% of it was organic -- the rest came from acquisitions. Banks need to face this decade's imperative: investing in customers. Those that fail to do so will also fail to grow.
Some Have What it Takes to Earn Customer Loyalty
The Boston Globe 1/19/2003
Bain & Co. has given the "Loyalty Acid Test" survey to several thousand customers and employees of companies across the nation, and typically less than half a company's employees believe their firm deserves their loyalty. That, of course, can affect efficiency and customer service. And in a depressed environment like this one, any edge in service can make all the difference.
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