Customer Loyalty – it can make or break a business exit or transition
- May 9, 2016
- Jeremy de Constantin
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A savvy business investor or buyer will check out how loyal your customers are. The larger the transaction the more certain I am this will occur.
Do your customers love you, do they talk negatively about you when you are out of earshot, or couldn’t they care less about you?
The challenge for any business owner (especially if you have an exit or transition in mind) is to make absolutely sure you have a loyal following, well in advance of the investor or buyer doing their due diligence.
A business recently fell well short on their customer loyalty test, which triggered further digging, ending up in the withdrawal of a lucrative buy-out offer, worth $15m.
For our clients we have engineered a great solution using the Net Promoter Score integrated into our dashboard platform.
With this platform we quickly provide clients a score out of 100 that tells them how many customers are out there promoting their brand, versus how many are spreading the bad news.
Now here comes the big challenge, even for those of you familiar with the Net Promoter concept.
If you are serious about Customer Loyalty, take up the challenge and publish your NPS to your Home Page. Check ours out (top right hand corner) at deconstantin.com.au.
Since doing this we have found something very interesting occur within our own team.
It has produced what we call the go-the-extra-mile effect on everyone. Making our score visible and public keeps us all on our toes.
So the question for us becomes: What do we have to do to get a 9 or 10 out of 10? While an 8/10 is good we are now aiming even higher!
So if you are planning a business exit or transition, my advice is to get one step ahead of a buyer or investor and have your customers raving about your business when asked.
If you want to proceed:
Step 1 – Pull together a list of your customer’s email addresses (and first name) – csv format ideal.
Step 2 – Send this list through and we will have your Net Promoter Score back to you in a matter of days.
Step 3 – Take up my challenge and publish your score for all to see on your Home Page. Check out ours on the link below.
PS. While our Net Promoter is currently sitting on 68, the best score we have seen is a whopping 75 at St Vincent’s Private Hospital (Sydney) where my good friend Jose Aguilera runs a very tight ship. For anyone who has been a patient at St Vincent’s, their score is spot on.