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Does “growth” drive prioritization?
Posted on October 1, 2009
CATEGORIES: Loyalty Research
I’ve been writing in various forums about using Net Promoter as a cost-effective growth engine. Doesn’t every company want to optimize its business to increase growth? To me this makes sense and is easy:
- Segment your customers into 3 groups: those that are with you (“promoters”), those that are against you (“detractors”), and those that have no opinion (“passives” – but who are those people…? more on that in a future post).
- Slice up your actual customer revenue into those 3 categories.
- Find out what creates promoters and detractors in your business (your customers will tell you). This is the investment (cost) side of the equation.
- Model what will happen when you address those drivers (i.e. what revenue will result when you create more promoters by addressing that key driver). This is the benefit side of the ROI.
OK, so this requires a little math and statistics, but it’s not rocket science and we can do this quickly. We have done this and PROVEN that it works. So why aren’t more companies doing this? Wouldn’t every company want to know which initiatives will produce the best results at the lowest cost??
The answer, I believe, lies in that fact that too often there’s a personal agenda involved. If the “company” had its own mind and thought entirely logically then the process would work on its own. But personality and politics play a role. “Prioritization” is often a game of politics. And if you don’t have a plan to change that mind-set, then all the statistics in the world won’t help you.
- Get buy-in and know who’s with you. And understand that there are ‘best practices’ in managing this change. Use them to build your team.
- Then get the stats and create the model.
What do you think?