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Critical 5-minute McKinsey read for any B2B Exec that doesn’t prioritize customer loyalty

Critical 5-minute McKinsey read for any B2B Exec that doesn’t prioritize customer loyalty

I recently ranted about how to best accelerate profitable growth (Accelerating profitable growth: How to tip the scales in your favor), “…we know that good Merger & Acquisition activity can accelerate top-line growth… but considering the investment, is it profitable (or at least “optimally efficient”) growth, and with a better ROI than true customer loyalty?  I’ve not seen good evidence (anyone have pointers?), so in general I don’t think m&a is “better,” yet such activity probably is easier than driving true customer loyalty (and I’ll elaborate below).”

Now McKinsey has done a great job exploring this question further:

“Organic Growth isn’t easy, and may take more more time and effort to affect a company’s size.  But it often generates superior value.” – McKinsey, Jan 2017

  1. Please take 2-3 minutes to review what McKinsey & Co found.
  2. Then take 2-3 minutes to look at their deeper-dive, in which they state:

“A look at the share-price performance of 550 US and European companies over 15 years reveals that for all levels of revenue growth, those with more organic growth generated higher shareholder returns than those whose growth relied more heavily on acquisitions.  The main reason is that companies don’t have to invest as much up front for organic growth.”

3. And finally, I ask you to take 5 more minutes to review best practices on strengthening your B2B customer relationships.

If this 10-minute investment doesn’t motivate you to journey to true customer-centricity, then the only other idea I have is this:  Remember that Failure sucks (so much so that we wrote a whole book about it).  And as much as it sucks for you, imagine how failure impacts your customers when they are unable to succeed with your company’s products and services.

Steve is the Founder of Waypoint Group and mastermind behind TopBox, the voice of customer engagement platform for B2B. As a customer success veteran, Steve has helped shift the Net Promoter® framework for SaaS and B2B companies, highlighting the need for account-based KPI's and measuring ROI for CX. Beware of those silent accounts! Contact him at steveb@waypointgroup.org.

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