A throwback to kick us off - Are you still undervaluing your customers?
Daniel M?llerhenn
Customer Strategy Advisor | Expert for CX & NPS | Business Angel/ Investor
Welcome to the Customer First Newsletter by Daniel Moellerhenn
Hello and welcome to the inaugural edition of my LinkedIn Newsletter, where I’ll be sharing insights, strategies, and thought leadership on customer experience, customer centricity, and driving sustainable business growth.
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About Me
With over 15 years of experience as a strategy consultant at Bain & Company, I have had the privilege of working across various industries in the EMEA region - from Telco to Insurance, Banking to Pharma, Auto and tractor OEMs to eCommerce, and many more. My mission has always been to work collaboratively, to drive change and to help companies become more customer-centric. My teams and I do this by driving initiatives that not only improve customer satisfaction but that also generate significant results - financial and non financial. I’ve partnered with businesses in over 100 projects to drive sustainable growth by turning customer feedback into actionable strategies and bringing about individual and structural change.
I’m also part of a global network of customer experts with whom I regularly exchange knowledge and best practices. This network allows me to stay on up-to-date regarding customer trends and innovations, ensuring that the strategies I recommend are both current and effective.
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Please subscribe
If you’re passionate about customer-centricity and want to stay informed on the latest trends, strategies, and insights, I encourage you to subscribe to this newsletter. By doing so, you’ll receive regular updates on how to enhance your customer programs and drive sustainable business growth. Let’s embark on this journey together. Please, provide your feedback, your thoughts and input but also topics you would like to know more about so that I can shape the newsletter with a "Customer First" approach.
A throwback to kick us off - Are you still undervaluing your customers?
What better place to kick off a newsletter focused on putting customers first than by going back to the root of it all: Businesses that invest in customer loyalty perform better than their competitors (over 3X (!!) based on a recent Bain study comparing the TSR of NPS leaders to the TSR of the rest of the pack in 7 industries). And yet, many companies still undervalue their customers, focusing more on acquiring new ones than on nurturing and retaining existing ones.?
Source: 贝恩公司 , Customer Strategy Practice
One key point from the Harvard Business Review article, “Are You Undervaluing Your Customers?”, is the concept of customer lifetime value (CLV). The article argues that businesses often underestimate the long-term value of their customers. By only focusing on short-term sales, they miss out on the substantial profits that come from loyal customers who not only purchase more over time but also refer new customers.
The article emphasizes the importance of shifting from a transactional mindset to a relationship-driven approach. Companies should invest in understanding their customers’ needs and preferences, delivering personalized experiences that create emotional connections. This not only enhances customer satisfaction but also increases the likelihood of repeat business.
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Moreover, businesses should measure and manage CLV more effectively, aligning their strategies to maximize the value each customer brings over time. This could involve adopting more sophisticated analytics to track customer behavior, preferences, and engagement, thereby allowing companies to tailor their offerings more precisely. Please, also see the latest Pyxis' report on this: https://www.pyxisbybain.com/clv-food-delivery-report#download
Takeaway
To avoid undervaluing your customers, start by recognizing their potential lifetime value and shift your focus from short-term gains to building long-term relationships. This strategic shift will not only enhance customer loyalty but also drive sustainable growth for your business.
Closing Thoughts
Understanding the true value of your customer base is crucial for long-term success. However, an essential starting point is having an executive team that has chosen to put the customer FIRST even if it's sometimes in conflict with short-term earnings. Making this seismic shift is notoriously difficult and one of the goals of my newsletter is to arm you with data & stories to soften the narrative and encourage customer-first change. I encourage you to reach out to me or my partner colleagues at 贝恩公司 . We’re here to help you uncover insights, develop strategies, and implement actions that can significantly enhance the value of your customer relationships and, in turn, drive sustainable growth for your business.
Let’s connect and discuss how we can work together to unlock the full potential of your customer base.
I would like to extent a special THANK YOU to Alastair Cox for your encouragement in starting this newsletter and support in writing it. Thank you!
If you’re passionate about customer-centricity and want to stay informed on the latest trends, strategies, and insights, I encourage you to subscribe to this newsletter.
Put the customer at the center of everything you do.
Daniel
Healthy lives on a healthy planet
5 个月Excellent reminder Daniel and the right recipe in every industry. Let’s start a conversation about advocacy value next as in industries with high acquisition costs or outsized impact of network effects, this value can even surpass the CLV and should be added in right there. While most companies have cracked CLV at least in theory, many still struggle putting value against advocacy and comparing to traditional customer acquisition costs.