Fred Reichheld on CX: An Exclusive Three-Part Conversation
In this three-part video series, Lynn Daniel, Founder & CEO, of The Daniel Group, interviews Fred Reichheld, Bain fellow, founder of the loyalty practice at Bain, creator of the NPS® (Net Promoter Score) program, bestselling author, and a renowned speaker, on the fundamentals of CX to drive business growth.
Throughout the interview, Reichheld underscores the significance of customer loyalty, the emotional bond between businesses and customers, and the pivotal role of outcome metrics in understanding and driving business growth.
Fred Reichheld is a prominent figure in the business world, known for creating the NPS program and his contributions to customer loyalty. His books, particularly his latest, “Winning on Purpose,” are widely acclaimed. Fred’s engaging speaking skills were evident during a client conference hosted by Lynn Daniel where he was the keynote speaker.
Part 1: Customer Loyalty
“But whether you’re a CFO or the head of marketing, anywhere in the organization, I think if you really understand the economics of business, sustainable, profitable business, you understand this fundamental truth that the only way to grow profitably through the years is to treat customers so they come back for more and refer their friends. That’s the only sales force that you can afford to pay in a cost sensitive world. And if you have to buy your growth because you can’t earn it the right way, it’s a real short-term period victory.” Fred Reichheld
Part 2: The emotional bond between businesses and customers
“So, the incentive is to oversell, overpromise, cram more than the customer needs down their throat in the first year. And then you don’t really get hit with the costs of overselling because you’re onto the next, and the commission that doesn’t get earned, it is from the service guys who can’t live up to your promises. That you go through the entire set of silos and you get silo specific compensation that really is at best, it’s orthogonal, but it’s usually anti-making customers happy. It’s making the accountants happy, or it’s making your boss happy in the silo. But very little, I contributed to a cross-functional experience that turned this customer into someone who just loves us and gives us all their business at a good price.” Fred Reichheld
Part 3: The pivotal role of CX outcome metrics in understanding and driving business growth
“It’s more profitable than what the salesforce is generating for us. But somehow business just hasn’t gotten serious about keeping track of that and rewarding the salespeople and the service organization who created Joe in the first place. But the Joes out there need to be identified. So, back for more, refer your friends. Those are the outcomes. Measure them versus your key competitors. And suddenly, this worldview where love is the only way to win becomes very rational.” Fred Reichheld
This interview series is part of our Client Success Stories. Click here to view interviews from our clients on how they make CX a priority in their businesses to drive growth.
“Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld. Net Promoter ScoreSM and Net Promoter SystemSM are service marks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld.”
