They’ve Done Studies, You Know featuring Graham Hill

Can you really pump profits by 100% by reducing customer churn by only 5%? Dr. Graham Hill joins to break down this oft-quoted stat from Fred Reichheld.

Just because you attach numbers to something doesn’t necessarily give it credence – Even Ron Burgundy can sniff that out. This scene from 2004’s Anchorman: The Legend of Ron Burgundy featuring Will Ferrell as the title character and Paul Rudd as Brian Fantana encapsulates a quote popularized by Mark Twain – “There are three kinds of lies: lies, damned lies, and statistics.”

Business decisions are often made on the back of statistics. Dr. Graham Hill has spent decades consulting for some of the largest organizations in the world. His work is grounded in research about customers, their behaviors, and what really drives them. We begin this week by digging into an oft quoted statistic regarding customer retention and profitability, and why it doesn’t make sense.

We discuss:

The myth of customer loyalty
Flaws in an oft-cited customer retention quote
Limitations of NPS and other customer loyalty measures
The importance of understanding the jobs customers need done
What companies get wrong about personalization
The value of customer service

Connect with Graham on LinkedIn

Music courtesy of Big Red Horse