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Intuit services accounting firms, it has to offer quite
            different outreach and training programs to large   Net Promoter  companies use regular customer
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            and small enterprises. For any supplier to a large   feedback to understand what they are doing right
            corporation, simply mapping who in the organiza-  and wrong. They loop the feedback quickly to fron-
            tion decides on, influences and uses the product   tline employees, their managers and senior execu-
            can be a Herculean task.                  tives. This allows employees to discover the root
                                                      causes of both problems and areas of distinction
            In B2B markets, even those long regarded as com-  which then enables them to take targeted actions.
            modities, deriving strategic advantage from loyal   Over time, the accumulation of improvements ser-
            customer relationships requires true differentiation.   ves to build a powerful competitive differentiation.
            Often that means not just great products at com-
            petitive prices, but also dependable delivery, tailo-  Generating revenues from existing loyal customers
            red services and a high level of responsiveness and   can be done much more efficiently than acquiring
            collaboration. The value in most B2B markets has   new customers. Customer loyalty thus has a big
            shifted. Among manufacturers, for instance, profit   upside on several fronts that combine to accelerate
            pools have moved downstream to ancillary servi-  organic growth:
            ces, lifetime contracts or provision by the hour—all   •   B2B customers who are “promoters” have an
            of which depend on addressing customer needs   average lifetime value typically three to eight
            such as reliability or reduced risk. B2B companies   times that of “detractors,” depending on seg-
            thus need to go beyond mere satisfaction to earn   ment and industry. (We define promoters  as
            customers’ enthusiasm and loyalty so that they can   respondents  who  give  their  company  a  Net
            improve the business’s economics.            Promoter Score , or NPS , of 9-10, while
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                                                                      SM
                                                         detractors give a score of zero to 6.) Promo-
            As Lanham Napier, CEO of cloud hosting firm   ters stay longer with the company, buy more
            Rackspace put it, “Greatness is achieved when cu-  products, usually cost less to serve and are
            stomers say we’re great.”                    more likely to refer the supplier to colleagues
                                                         and friends.
            Can a B2B customer really promote or advocate   •   NPS correlates closely with sales growth, ex-
            for your business? Yes, but not just by saying fa-  panded share of wallet, sales force producti-
            vorable things or recommending the firm to others.   vity, greater market share, greater employee
            Loyalty and advocacy also can be expressed  as   engagement and higher profitability, according
            the customer’s willingness to discuss how you can   to Bain research and client work.
            better serve his or her needs and add more value—  •   As a result, B2B loyalty leaders tend to grow
            critical to boosting revenues and profitability.  four  to  eight  percentage  points  above  their
                                                         market’s annual growth (see Figure 1).
            To that end, many B2B companies have adopted
            a comprehensive approach called the Net Promo-  It might sound obvious that better economics flow
            ter System . This system gives companies the   from delighting customers. Yet this logic has only
                     SM
            foundation for determining which investments will   recently permeated the day-to-day operations of
            yield the highest return, while it shapes behaviors,   many B2B companies  that have  a legacy of fo-
            mindsets and decision making at all levels in order   cusing largely on product or technical innovation.
            to form a more responsive, customer-centered or-  Despite the professed importance of customer re-
            ganization.                               lationships, it’s getting tougher to maintain them:
























                                                                                               Figure 1: In B2B, promoters
                                                                                               have significantly more value
                                                                                               than detractors



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