My Granddad used to say, when times are tough hang on to those that love you. Is the same true for tough economic times and B2B relationship marketing?
Your market is fundamentally made up of three types of targets. Customers you have, those you’ve lost, and potential accounts who – so far – have decided to do business elsewhere.
This is the first of a serial discussion (please join in) about measuring and connecting some specific customer experience management dots for minimizing customer churn, growing key accounts and identifying new revenue opportunities with companies that share common profiles with those with whom you do well.
Over the decades I’ve devised and managed dozens of customer retention programs. As a deliberate marketing proponent I was an enthusiastic Net Promoter adopter because of its implied relationship with corporate growth and its sheer simplicity – something very appealing when trying to achieve internal buy-in for major (sometimes costly) customer experience initiatives.
But in times like these where the outcome of a company’s customer experience strategy can make or break quarterly revenue plans, a one dimensional measurement such as NPS may help to know how many loyal customers there are, but isn’t very good for knowing about problems or –more importantly– how to fix them.
So while I love the idea of NPS as a simple advocacy index (as well as the role it’s had on increasing the importance business owners now place on these types of marketing metrics) I’ve found it to be just one of the many dots that need connecting to drive revenue growth. The most common mistake in the B2B world today is confusing loyal customers with satisfied customers.
The difference between satisfied customers and loyal customers is distinctly a matter of emotion. And while metrics dealing with both are very different and have unique implications – they are interdependent as two halves – quantifiable (satisfied) – and subjective (loyal) of the complete customer relationship picture.
This means customer feedback must be secured, structured, analyzed and acted upon in both concrete and abstract formats. To this end I have developed an arsenal of best practices that can be used for the following:
- Optimize the flow of information and feedback that captures both quantifiable and emotional responses to “customer experience” surveys.
- Analytical methodology for connecting and measuring quantifiable and emotional feedback to determine a “CEI,” or Customer Experience Index for each customer on your list.
- Templates and guides for using CEI scores to craft short, mid and long term account plans for retention, up-selling and cross-selling.
- Templates and guides for using highest CEI scores to locate new prospects using rule based company profiling and role-based targeting.
- Templates and guides for using lowest CEI scores to plan and deliver action plans aimed at reshaping customer attitudes and opinions
Over the next few weeks my blog posts will address these subjects one-by-one. Again, I’d really appreciate your feedback as we go.