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Why Customer Loyalty Beats Quarterly Earnings

Across industries, companies that prioritize customer relationships deliver outsize growth.

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Why Customer Loyalty Beats Quarterly Earnings
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Loyalty leaders—companies at the top of their industries in Net Promoter Score® or satisfaction rankings for three or more years—grow revenues more than twice as fast as their industry peers, according to Bain research. Yet companies and investors have historically prioritized quarterly earnings over customers, pressuring managers to shortchange them in the blind pursuit of shareholder value. Now, however, this short-termism is changing, thanks to new accounting tools, fundamental shifts in the way companies organize work, and the realization among at least some investors that customers are the ultimate source of corporate value. Companies can lead the change by disclosing reliable and consistent information on customer value in their earnings releases.

Net Promoter®, Net Promoter System®, Net Promoter Score® and NPS® are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

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