Ever tried to bake a cake without an egg? Part 1

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It’s pretty common knowledge now that creating customer advocacy pays off.

By ‘advocacy’, I mean generating such an emotional connection with your brand that customers remain loyal in the long term and by ‘pays off’, I am referring briefly to the robust research that concludes that loyalty leaders have lower costs and higher growth rates than the average organisation.  (If you don’t believe me, check out any of Fred Reicheld’s work on-line.)

So armed with this knowledge, you’d think organisations would be getting much better at creating high levels of advocacy, wouldn’t you?  Well I don’t know about you, but I’m not feeling a massive amount of advocacy for many of the companies I am a customer of – there are some, but they are still the same companies I liked 20 years ago.  They are probably the same companies you like, or at least have heard other people raving about.

Connect - BlueSky - Bluesky Performance Improvement

10 years ago research was conducted into Customer Centricity, to establish the extent to which organisations truly did place customers at the heart of their organisation.

What this research revealed was this:

  • 83% of companies believed their CEO’s were passionate about customers, although few had evidence to support it.
  • However, whilst over 80% of organisations had strategies in place for customer acquisition, development and retention, in some cases as few 40% actually had the relevant processes, targets and measures in place to implement the strategies effectively. Companies knew what to do but didn’t have the mechanisms in place to deliver.

Now 10 years on, we repeated this study in to a smaller number of organisations, but the pattern was evident all the same.  The picture 10 years on looked like this:

  • Interestingly 88% of organisations now believe their CEO is passionate about customers
  • However over 90% now have not only the strategies in place, but claim to be happy with the supporting processes, targets and measures in place for each business development component – customer acquisition, customer development and customer retention

The next part of this blog will explore the shift and what it means to the ‘Top Dogs’.

Sally@Bluesky

Sally Earnshaw - Blue Sky Performance Improvement

www.blue-sky.co.uk

Blue Sky Performance Improvement

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