Rob Markey, Bain & Co partner, author of "The Ultimate Question 2.0," and co-creator of the Net Promoter System (NPS) has a new Harvard Business Review article out. It’s called, “Are you undervaluing your customers?”
I think this is the right question to ask. After all, the purpose of a business is to create and keep customers, says Peter Drucker. Yet, too often we get caught up in other pursuits…bookings, billings, revenue, earnings per share, churn, health scores, comp plans, reorgs, endless arguments over who owns the customer experience.
I could go on, but I will spare you.
This is not a dig.
It’s easy to get focused on these things because there are so many important and urgent things to do. Plus. The financials are important. It’s just that customers drive the financials, so maybe we should start there.
And as Rob reminds us. Focusing on customers IS about the numbers.
His research continues to show that loyalty leaders (in their industries) grow revenue at 2.5x times faster than peer companies and product shareholder returns that are 2x to 5x higher over a ten year period.
This data is not wavering.
It’s possible too many of us are focusing on the short term (financials) at the expense of the long term (customer loyalty and financial results). That’s what Rob is arguing, and he offers three customer metrics that every business should start measuring and reporting.
More about Rob:
The HBR Article, "Are you undervaluing your customers?” https://hbr.org/2020/01/the-loyalty-economy
Bain & Co: https://media.bain.com/customer-value/home/
Net Promotor System: https://www.netpromotersystem.com/
175 Rob Markey The New Customer Metrics