Bad Profits, Good Profits, and the Ultimate Question: How "Net Promoter" Companies Thrive in a Customer-Driven World
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- Synopsis
- In today's Web-savvy world, where negative word of mouth is instantly broadcast over a global PA system, companies are trying to stay competitive by focusing more closely on their customers. They want to attract the most talented employees, too, so they know they need to be mission driven. But despite all the effort managers everywhere have put into these twin tasks--focusing on customers and inspiring employees--there hasn't been much progress. Why? Because most companies are ruled by financial and accounting metrics; at the end of the day, they yield to the gravitational pull of short-term gains. The result is what author and world-renowned expert on loyalty economics Fred Reichheld and his Bain colleague Rob Markey call "bad profits"--profits earned at the expense of customer relationships. In this chapter, Reichheld and Markey use business stories pulled from the headlines--America Online, US Airways, Blockbuster--as classic examples of companies that relied on bad profits to spur growth, to disastrous effect. They contrast these "bad profit" examples with the stories of Amazon, the Vanguard Group, Zappos, eBay, Southwest Airlines, and Costco, all of which handled customer relationships so deftly that their customers became "promoters" instead of "detractors," generating good profits and sustainable growth. The chapter closes with an explanation of The Ultimate Question and a graphic that clearly shows who the industry leaders are when it comes to creating loyal customers.
- Copyright:
- 2011
Book Details
- Book Quality:
- Publisher Quality
- Publisher:
- Harvard Business Publishing
- Date of Addition:
- 08/03/16
- Copyrighted By:
- HBS Press
- Adult content:
- No
- Language:
- English
- Has Image Descriptions:
- No
- Categories:
- Nonfiction, Business and Finance
- Submitted By:
- Bookshare Staff
- Usage Restrictions:
- This is a copyrighted book.