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Customer Intimacy Creates ROI
While a growing number of B2B and B2C Marketing organizations publish their Net Promoter scores as a potential differentiator, I’m wondering why Marketing departments have been slow to embrace Net Promoter Score as a Key Performance Indicator.
If you been reading this blog you’ve seen our discussions around leveraging your customers as an asset, and how your customers can scale the company as an extension of your employees (see the 5 Cs of Finance). Now a San Francisco-based credit union shows us they have slashed their external promotional expenses from ~$800,000 to just $3,000 annually! As they implement improvements to optimize the customer experience, they continue to acquire new customers at an ever increasing rate through the power of word-of-mouth.
There will always be those who doubt any causality. But this is yet another organization that believes that customers are the source of growth and they are reaping the rewards. Note that the improved customer acquisition rates began as far back as 2007, far earlier than the financial meltdown that has favored community-based operations. So while this CEO is able to allocate operating expenses to the areas of the business that matter most, I would love to hear from Marketing folks that are identifying and engaging their promoters in order to scale their organization.