A recent research project for a client opened our eyes to the impact that high-quality customer service has on growth. This client has used our transactional survey process for five years.
We compared the service growth over a four-year period by individual customer account with the responses from each customer account to the Net Promoter® question (willingness to refer).
As the chart shows, there were some big differences.
There are at least three messages from this finding:
- These findings confirm a lot of other research about how good service influences customer loyalty.
- Service consistency matters. Notice that revenue grew only where the service quality started high and stayed high.
- Even when service improves it still takes a while for customers to reward a supplier with more revenue. The customers that started with a lower Promoter response, but improved, still showed a negative compound annual sales growth rate (though a lower rate than those with a declining Promoter response).
I welcome your comments. What are you finding regarding connections between service quality and other business outcomes such as sales or profitability changes?
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