Gaining Exec Team Buy-In for an Investment in Customer Loyalty - Tom Kehler
Pitney Bowes MapInfo is one year into an NPS program. True to the title, Reid Hislop, VP Corporate Marketing, gave a clear picture of how the team built and sold a business case for the investment value of an NPS program. At the start, Reid had some top management support but he needed to turn that support into a business case that would pass CFO and board muster.
MapInfo looked at three options:
- Maintain the status quo,
- Implement an NPS program using a customer experience (CEM) Platform, and
- Implement a CEM platform with a Business Process Redesign partner.
The CFO was engaged from the beginning in building the business case for which option to choose. Maintaining the status quo basically meant keeping an ad-hoc process in place that was not particularly consistent or fit to scale.
A key point in the business case was to look at the average revenue associated with a Promoter, a Neutral, and a Detractor. While a Neutral delivered more than twice as much revenue as a Detractor, a Promoter’s revenue value was 3.7 times that of a detractor. This in a business model where the average customer value is 6 figures!
The results showed clearly that putting in a full program with business process redesign yielded a very high internal rate of return resulting in board approval and program implementation. The program is rolling out and will be tied to 2008 executive management compensation.
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