This document summarizes a presentation by Ed Kless on measuring what matters to customers. It discusses using key performance indicators (KPIs) like Net Promoter Score and customer satisfaction to measure how well a business is meeting customer needs. It also presents the concept of a "value gap" analysis to quantify the value provided to customers versus the revenue generated to identify opportunities to better serve customers. The presentation emphasizes that marketing and innovation are the core functions of a business and that metrics should align with how customers define success.
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“Because its purpose is to create a customer,
the business enterprise has two––and only
these two––basic functions: marketing and
innovation. Marketing and innovation
produce results; all the rest are ‘costs.’”
- Peter Drucker
“Because its purpose is to create a
customer, the business enterprise
has two––and only these two––basic
functions: marketing and innovation.
Marketing and innovation produce
results; all the rest are ‘costs.’”
- Peter Drucker
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Getting Customers on The Grid
• Customer name
• Lifetime Revenue
• Net Promoter Score
• Customer Likeability Score (or other index)
@edkless
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Customer Likeability Score (CLS)
1. Disagree strongly
2. Disagree
3. Disagree somewhat
4. Agree somewhat
5. Agree
6. Agree strongly
On a scale of 1-6, please rate your level of agreement with the following statement:
This customer is clearly a joy to work with.
@edkless
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The Grid
C B A
F E D
Net Promoter Score
Neutrals (7-8) Promoters (9-10)Detractors (0-6)
CustomerLikabilityScore
DislikeLike
@edkless
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On the grid
0
2
4
6
0 2 4 6 8 10
C B A
F E D
Net Promoter Score
Neutrals PromotersDetractors
CustomerLikabilityScore
DislikeLike
@edkless
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Value Gap
Basic
• Customer name
• Revenue from the customer per some discrete period
• Value provided to the customer in that same period
Advanced
• Value that could be provided over a future discrete period
• Possible acceptable price (revenue) for that provided value
@edkless
24. Measure what matters (to customers)
Ed Kless
GN-27
Tuesday, July 28th, 4:30pm to 5:15pm
@edkless
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Questions?
• Send any questions you may have about this session to the
following email by August 15:
@edkless
ConferenceSessions.NA@sage.com
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Session survey
• Complete a survey for this session!
@edkless
http://goo.gl/2MUPWW
Session code: GN-27
Session title: Measure what matters (to customers)
27. Measure what matters (to customers)
Ed Kless
GN-27
Tuesday, July 28th, 4:30pm to 5:15pm
@edkless