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      Snap Chart

      Why Customer Loyalty Beats Quarterly Earnings

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

      By Rob Markey

      Snap Chart

      Why Customer Loyalty Beats Quarterly Earnings
      en

      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.

      Read More

      Are You Undervaluing Your Customers?

      It’s time to start measuring and managing their worth.

      • Methodology

        Growth rate is based on the most suitable sector-specific metric for determining organic growth.

        Growth multiple calculated as ratio between NPS leader weighted average growth rate and market weighted average growth rate. NPS leaders are players who are at least one standard deviation away from industry mean Net Promoter Score, except for Mobile Phone (US) which uses 0.5. Market growth rate computed on players considered in the analysis.

        Time period for each growth rate is time period with best correlation results, except for Grocery (UK) to avoid negative growth rate for UK market.

      Authors
      • Headshot of Rob Markey
        Rob Markey
        Advisory Partner, Boston
      Contact us
      Related Consulting Services
      • Customer Experience
      • Net Promoter System®
      Published in luty 2020
      Tags
      • Customer Experience
      • Loyalty
      • Net Promoter System®

      How We've Helped Clients

      From Laggard to Leader: Desjardins Evolves Member Centricity for the Digital Age

      Read case study

      Improved Customer Focus Helps ParcelCo Grow Share and Reduce Costs

      Read case study

      An Automaker Reinvents Customer Experience with a Focus on Key Episodes

      Read case study

      Ready to talk?

      We work with ambitious leaders who want to define the future, not hide from it. Together, we achieve extraordinary outcomes.

      Net Promoter®, NPS®, NPS Prism®, Net Promoter System®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld. Net Promoter Score℠ is a service mark of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld.

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