Most CX budgets go toward preventing complaints. Very little goes toward the experiences that make customers talk about you.
New research in Harvard Business Review, co-authored by Fred Reichheld and based in part on NPS Prism data, examines what customer recommendations are actually worth.
Promoters who go on to recommend a company make up roughly 15% of a typical base, and their referrals account for 72% of new-customer profit over three years.
That recommendation, and the profit it generates, is earned somewhere specific: in a claim, a call, an onboarding, a cancellation. The companies that can find those moments and fund them grow more efficiently than the ones that can't.
Download the article to learn:
- Where the efficiency gap between NPS leaders and laggards actually shows up on the income statement
- How little of referral volume incentive programs account for, and what earns the rest
- The operational threshold one company found behind its promoter scores, and what happened when managers were measured on it
