The point of a business is to make money. But revenue generated under negative circumstances brings with it some troubling baggage—and it’ll likely bite you in the long run.
“When companies benefit financially from a bad customer experience, those are bad profits,” explains Jeff Sauro, author of Customer Analytics For Dummies.
Examples: Customers have to pay the check at a restaurant after receiving terrible service, but they won’t return. People pay a cable bill for 200 channels but watch fewer than 20.
“Bad profits are like bad karma for companies,” he adds. “Sure, you get the sale now, but the bad experience, price or product will come back to hurt you.”
5 steps to ‘good profits’
Do you have bad profits? According to Sauro, here’s how to respond:
1. First, figure out what percentage of your profits are “bad.” Your company’s Net Promoter Score (NPS) is a useful tool to gauge which percentage of your profits are bad. NPS ...(register to read more)