The Good the Bad and the CLM

Written by
Bill Shapard
September 5, 2011

Incremental profit is up. Cost reduction is down. That’s good right? Not necessarily.What percent of the incremental profit came from new fees and charges that drive away business instead of repeat customers loyal to your organization? What percent of cost reduction came from offering fewer services to current customers as opposed to fewer customers leaving for another organization?Though all companies measure their profit each year, few know the difference between good and bad profit and fewer still have any infrastructure in place to determine which their profit is. Shapard Research’s Customer Loyalty Management system reveals the good and the bad and helps organizations develop an infrastructure that, over time, strategically removes bad profit and increases good profit.When an organization fully commits to the Shapard Research Customer Loyalty Management system they are making a commitment to move the culture of the organization from a product driven mentality to that of a customer experience driven mentality. A shift to a customer experience driven business model means a shift in the metrics by which the business and all the employees are judged.Study after study has demonstrated that organizations with the highest customer loyalty numbers grow revenues at more than twice the rate of competitors, yet very few organizations measure their employees’ performance on anything other than financial reports. In order for an organization to capitalize on all the benefits that increased customer loyalty has to offer, the metrics for measuring performance must shift from how the financial reports look to how effective they are at providing a great customer experience.

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