Business Technology Insight LLC, the Act/Sage partner in South West Florida, and I gave a seminar in Naples, Florida to a group of local business people, on Loyalty Management, concentrating on Loyal Customers.
It was both great and concerning – great because the seminar was given a 100 Net Promoter Score rating by the decision makers.
Concerning because the group had at best a sketchy understanding of Customer Lifetime Value or Net Promoter Score, clearly there is much to be done to convince managers that converting satisfied customers into loyal customers, then retaining them and encouraging referrals, is an investment not a cost – an investment with a stunning return.
I believe that part of the problem is the “short terminism” that seems to prevail in most companies. If the managers are judged on this year’s or this quarter’s performance then their entire focus will be on maximizing current profits, often at the expense of future growth.
It’s got to be wrong that the procedures used to value a company’s is the same for a company with a majority of loyal customers and employees as it is for a company with a minimum of loyal customers and employees.
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