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Earned Growth Rate: A New Way to Measure the Impact of Customer Recommendations on Sales

Earned Growth Rate enables companies to track business growth and determine how much of it was generated from customer recommendations.

Two customers discuss plants with a garden center sales associate. The BILT nut icon is on the bottom right and text on the bottom left reads "Leadership Speaker Series featuring Fred Reichheld"

Earned Growth Rate (EGR) is an auditable metric to measure business growth that can be attributed to happy customers and their referrals. In this short video, Fred Reichheld, creator of the Net Promoter® System (NPS), talks about EGR and why NPS becomes ineffective when organizations use it as a target (for bonuses and promotions) instead of a tool to measure customer feedback.

Fred says the impetus to write Winning on Purpose: The Unbeatable Strategy of Loving Customers stemmed from a desire to course-correct the way companies use NPS.

While NPS helps companies achieve greater results through direct feedback from their customers, EGR quantifies the link between loyalty and profits.

As a frequent speaker at major business forums, Fred’s views about loyalty have been widely covered in The Wall Street Journal, The New York Times, Financial Times, Fortune, Business Week, and The Economist.

Play Video about Author and loyalty expert Fred Reichheld discusses earned growth rate while sitting in a bright home office

After viewing the video, here are some things to consider:

  • Does your organization struggle to directly link the impact of customer recommendations on sales or revenue growth?
  • Are NPS or other customer survey measurements being used by your organization as an internal measuring stick for bonuses or promotions?
  • Could EGR be a viable tracking tool for your company?

If you would like to learn more about the right way to use NPS in your business, check out our previous post: The Wrong Way to Use NPS.

BILT is proud to be featured in Fred’s most recent book, Winning on Purpose: The Unbeatable Strategy of Loving Customers.

Contact us to learn more about how BILT impacts NPS.

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