Customer satisfaction and growth

Interesting article in Sloan Management Review on linking customer satisfaction to growth. Looks based on very thorough research on customer satisfaction metrics and their subsequent behaviour – especially passing on recommendations. Of course, to do the customers-to-sales link properly, you would want to break apart the three elements [a] customer win-rate, [b] customer loss-rate .. and their combined effect on the total customer base .. and [c] purchase rate. See Strategic Management Dynamics chapter 6.  Do beware that how customers behave will be unique to your situation, so don’t go taking such general research findings as being directly applicable to your case.

And to really do it properly, you would want to segment this analysis by product, geography, customer segment – and also track the gains and losses vs. all other rivals.  My friends at Vanguard Strategy are the real experts in this, having transformed product strategy at some of the largest global brand companies.

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