Customer Advocacy was born out of necessity in another company, when its founder and then CEO (and today our current co-founder at Customer Advocacy) Jeff Quipp realized that growth was being constrained by the churn rate of its clients. While industry average customer churn rates were around 40%, his company was experiencing a churn rate of only 25%, but that 25% loss per year was much more costly to replace than merely keeping those customers on the books.
At the same time, Jeff was getting the sneaking suspicion that the reasons he was hearing for many client cancellations were “filtered” internally by staff before reaching him, and that there were actually persistent problems that just were not being resolved. As a result, Jeff began chatting with many other business owners with “low” customer churn rates to learn about the tactics and strategies they were employing to minimize their cancellation rates.
Fortunately, in one such meeting, a very compelling concept came to light; the concept of using NPS surveys to identify clients that weren’t wowed, to engage those clients in conversations to understand the issues those businesses were having and the ideas they had for improvement, and then ultimately to permanently solve for those systemic persistent issues and opportunities. “Brilliant” he thought! But being a marketer at heart, he thought what if he could also combine the concept of using NPS surveys to increase retention rates WITH the idea of using NPS to help improve the number of new clients his company was attracting by helping happy clients become raving advocates. Raving advocates being those clients actively shouting the company’s praises from the rooftops. It was at this moment, that Word-Of-Mouth Automation was born.
To test the concept, Jeff and his partner Wisam built a minimum viable product (MVP) and began to test the platform and approach with the company’s clients. All Clients were then surveyed to identify levels of satisfaction, and ask about causes of dissatisfaction. Jeff would then pick up the phone and chat with every Client that left a score of less than 8, with an eye to cut through the clutter and uncover the real issues they were facing. Almost immediately, suspicions were confirmed … the causes of many Client cancellations were being filtered, and recurring problems not rectified and instead were being “kicked down the road”.
As a consequence of now being aware of the real issues clients were experiencing, Jeff, Wisam and team were able to implement solutions to solve for the actual identified problems rather than the symptoms, and client retention rates began to improve further. Today, as a result of the continuation of this process and using the initial MVP platform, revenue retention rates in the original company grew beyond 95%, unheard of in that industry. Equally interesting however, is that the rate of new “organic” leads exploded at the same time, as a direct result of all the raving advocates spreading the message via reviews and referrals.
In 2018, Jeff retired from his original company, and started working on the plan for an even more comprehensive user-friendly word-of-mouth automation platform that all company’s could use. Today, this platform is known as Customer Advocacy Inc.