Since 2022, we have been in discussions with dozens of companies regarding the implementation of Earned Growth Rate.
All of them are advanced leaders of companies who have come to realize the limited value of the Net Promoter Score (read here, here, and here). As a response, they are seeking to translate their CX maturity into a more sophisticated set of KPIs.
However, a challenge persists: while most of them possess high Net Promoter Scores, they haven’t reached the stage where they can confidently assert that these high scores are translating into tangible gains of new customers.
They understand the extent of their investments in marketing, sales, and acquisition, essentially buying new customers. However, they lack the certainty that their high customer satisfaction scores are effectively being converted into the acquisition of new customers.
Hence, we launched initiatives to ascertain the primary reasons for joining and swiftly arrived at a breakthrough: even among those with an NPS of 50+, the actual percentage of Earned New Customers (see calculation here) remains quite low, hovering only around 5-10% of the total new customer base. The rest constitutes a customer base acquired through costly means. Consequently, the leaders’ subsequent response after assimilating this information is accurate: achieving a functional transformation will likely take them at least a year, transitioning from 5% to 10%, and so forth.
Yet, there’s a “but.”
We communicate to them: You can start modestly.
Commence by even adding only one true fan to your roster each day.
The addition of a single true fan daily shouldn’t demand extraordinary exertion.
Incorporating only one per day equates to 365 true fans within a year, and 1,000 in three years.
Moreover, 1000 true fans translate to:
>> If each true fan produces five positive social media posts annually, you amass 5000 user-generated content pieces to amplify.
>> Should these true fans contribute 100 Euros per year, it yields a revenue of 100,000 Euros.
>> In the event of a successful ambassadorship, a mere two additional customers each year snowballs into 2000 newly earned customers, at an exceptionally low Customer Acquisition Cost (CAC).
How should you proceed?
At this juncture, you might wonder,
“Alright, but how do I make it happen?”
Fear not – we’ve compiled a concise document outlining four activities that can assist in generating and/or maintaining these true fans. Reach out to us via email at hello@monetize.cx to receive it.
Naturally, your product, operations, and customer service should continually improve.
Yet, by merely adding one per day, you can effect a profound transformation.
Open your eyes and take the next step on the CX maturity ladder.
Let’s embark on this journey today.