Comments on: Financial Impact of Product Reputation on the bottom line http://blog.amplifiedanalytics.com/2009/10/financial-impact-of-product-reputation-on-the-bottom-line/ The Power of Many Little Voices Thu, 22 Jul 2010 14:55:10 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Greg Y (@piplzchoice) http://blog.amplifiedanalytics.com/2009/10/financial-impact-of-product-reputation-on-the-bottom-line/comment-page-1/#comment-27 Greg Y (@piplzchoice) Wed, 21 Oct 2009 17:48:16 +0000 http://piplzchoice.com/?p=99#comment-27 MK, Thank you for your interest. I just emailed the spreadsheet to you and would love your feedback about my approach and any ideas of how it could be improved. MK,

Thank you for your interest. I just emailed the spreadsheet to you and would love your feedback about my approach and any ideas of how it could be improved.

]]> By: MK http://blog.amplifiedanalytics.com/2009/10/financial-impact-of-product-reputation-on-the-bottom-line/comment-page-1/#comment-26 MK Wed, 21 Oct 2009 16:30:40 +0000 http://piplzchoice.com/?p=99#comment-26 Hi, Can I please take a closer look at the Calculator, for Product Reputation Impact calculator? Regards, MK Hi,

Can I please take a closer look at the Calculator, for Product Reputation Impact calculator?

Regards,
MK

]]> By: Re “Marketers Ignoring Customer Feedback from Social Media” | Amplified Analytics Blog http://blog.amplifiedanalytics.com/2009/10/financial-impact-of-product-reputation-on-the-bottom-line/comment-page-1/#comment-21 Re “Marketers Ignoring Customer Feedback from Social Media” | Amplified Analytics Blog Thu, 15 Oct 2009 21:39:37 +0000 http://piplzchoice.com/?p=99#comment-21 [...] product profitability, but it is just a rudimentary attempt for discussion and anybody who wants a copy can find it here. Share this on FacebookTweet This!Share this on FriendFeedShare this on LinkedinShare this on [...] [...] product profitability, but it is just a rudimentary attempt for discussion and anybody who wants a copy can find it here. Share this on FacebookTweet This!Share this on FriendFeedShare this on LinkedinShare this on [...]

]]> By: Gregory http://blog.amplifiedanalytics.com/2009/10/financial-impact-of-product-reputation-on-the-bottom-line/comment-page-1/#comment-13 Gregory Thu, 08 Oct 2009 23:29:48 +0000 http://piplzchoice.com/?p=99#comment-13 Many companies experience difficulties in measuring meaningful metrics because it requires connecting the dots to produce something actionable. If you cannot measure customer loyalty in a way that you can directly impact profitability - then it is easier to declare it non-important or non-existent. I would say it is virtually impossible to create a generic methodology for any type of business, it has to be done for specific segments only. Your comments, David, are very valid in a context of Enterprise Software business. I am not sure if they are as meaningful for more transactional selling model. Many companies experience difficulties in measuring meaningful metrics because it requires connecting the dots to produce something actionable. If you cannot measure customer loyalty in a way that you can directly impact profitability – then it is easier to declare it non-important or non-existent. I would say it is virtually impossible to create a generic methodology for any type of business, it has to be done for specific segments only.

Your comments, David, are very valid in a context of Enterprise Software business. I am not sure if they are as meaningful for more transactional selling model.

]]> By: David Locke http://blog.amplifiedanalytics.com/2009/10/financial-impact-of-product-reputation-on-the-bottom-line/comment-page-1/#comment-12 David Locke Thu, 08 Oct 2009 08:11:17 +0000 http://piplzchoice.com/?p=99#comment-12 The link between customer satisfaction and customer loyalty is tenuous. But, the link between customer loyalty and profitability is not. Where customer loyalty has problems is with the sales force that doesn't leverage it. If the sales compensation for new business drives the sales force to get new business and throw away the existing customer, then sure customer loyalty doesn't matter. If the sales force only used outbound sales (hunters) and does not us inbound order takers (farmers), then sure customer loyalty doesn't matter. Making it matter is a matter of managing your sales force. Customer loyalty is valuable because the cost of sale for upgrades is 60-90% less, but the company must make the effort to enforce this. Otherwsie, cusomter loyalty doesn't matter. When marketing treats existing customers exactly link new customers, as in sending them the exact same marcom, instead of a postcard telling them that a new version has been released, sure customer loyalty doesn't matter. When the license or subscription payment system isn't "habit," then customer loyalty doesn't mater. If all you do is look at measured media, sure, customer loyalty doesn't matter. But, why do customer evangelists matter? And, if customer evangelism matters, then why wouldn't customer sentement? Why do some companies make customer loyalty matter? Yes, customer loyalty matters, if not to you, then to your competitors. Make customer loyalty matter. The link between customer satisfaction and customer loyalty is tenuous. But, the link between customer loyalty and profitability is not.

Where customer loyalty has problems is with the sales force that doesn’t leverage it. If the sales compensation for new business drives the sales force to get new business and throw away the existing customer, then sure customer loyalty doesn’t matter. If the sales force only used outbound sales (hunters) and does not us inbound order takers (farmers), then sure customer loyalty doesn’t matter. Making it matter is a matter of managing your sales force.

Customer loyalty is valuable because the cost of sale for upgrades is 60-90% less, but the company must make the effort to enforce this. Otherwsie, cusomter loyalty doesn’t matter. When marketing treats existing customers exactly link new customers, as in sending them the exact same marcom, instead of a postcard telling them that a new version has been released, sure customer loyalty doesn’t matter. When the license or subscription payment system isn’t “habit,” then customer loyalty doesn’t mater.

If all you do is look at measured media, sure, customer loyalty doesn’t matter. But, why do customer evangelists matter? And, if customer evangelism matters, then why wouldn’t customer sentement? Why do some companies make customer loyalty matter? Yes, customer loyalty matters, if not to you, then to your competitors. Make customer loyalty matter.

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