Hope is not a strategy for success in business.
Boise, ID (PRWEB) October 25, 2010
For many businesses, referrals are their primary source of revenue growth, but it is not unusual for them to simply hope that this happens. To progress from crossing their fingers to actually knowing what is needed to grow their business and even predict future success, businesses need look no further than R Factor announced by Robinson & Associates, Inc.
“Hope is not a strategy,” says Lydia Baird, director of business development for Robinson & Associates, a company that helps businesses measure and manage the quality of the customer experience to increase revenue. “Success comes from knowledge and expertise. Our R Factor study can help businesses increase revenue by retaining existing customers, obtain the data they need to grow their business by increasing referrals from existing customers and predict if existing customers will stay with them long term.”
Details about R Factor are available at http://www.rfactorstudy.com.
A key element of R Factor is customer advocacy. Customers who are willing to risk their reputation for a business not only continue patronizing that company, they are also willing to recommend the company to others and that ultimately creates referrals, Baird says. “Clients who take the risk and make a referral without even being asked to do so are acting as advocates for the business. They can also be thought of as brand ambassadors who spread positive and powerful word-of-mouth advertising. When the business makes internal improvements to create more customer advocates, it can have predictable results concerning growth and profitability. Thus R Factor – risk, recommend, referral and results.”
The R Factor study is simple. Robinson & Associates asks customers six questions that they can quickly answer. Data from the study shows how customers feel about the company and what they want from it. The study also measures the degree to which the business has customer advocates and expresses it as an R Factor score. Robinson & Associates presents an executive summary with the score, customer comments and recommendations on how the business can improve operations to address issues and create more customer advocates. A second study is done six months later and 12 months later to produce a trend line for the R Factor score.
“The higher the score, the more customer advocates the business has and the more successful it will be,” Baird says. “Customer advocates generate repeat business and new business. And as the trend line moves up and the business sees the impact on the bottom line, it can project future revenues.”
Baird notes that R Factor has nothing to do with customer satisfaction. “Research shows that customer satisfaction has zero correlation to the future success of a business,” Baird says. “Even measuring customer loyalty is not good enough. Customers’ willingness to risk their reputation and recommend is the key. Advocates are far beyond satisfaction or loyalty.”
R Factor is based on proven methodology that has been written up in Harvard Business Review and is the result of 10 years of research of more than 4,000 customers in 14 industries. Fortune 500 corporations such as General Electric, Dell, Intuit, Enterprise Rent-A-Car, Symantec and Harley Davidson use methodology similar to R Factor, and Baird says R Factor can be successfully utilized by smaller companies.
For more information on R Factor, contact Baird at 208-991-2037.
Robinson & Associates, Inc., is a Boise, Idaho, firm that helps businesses measure and manage the quality of customer service and improvements to their internal operations to enhance business performance and increase revenue. It is a leading company in marketing and client retention and development.
MEDIA CONTACT: TOM ELLIS
Ellis Communications, Inc.
Phone (417) 881-5635
Yahoo IM tom_ellis46
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