Customer advocacy and referrals are crucial for organic growth and can be achieved by delivering exceptional experiences and value to customers.
Earned growth rate, which combines net revenue retention with the percentage of new customers influenced by referrals, provides a comprehensive understanding of the impact of customer success on overall growth.
Deep dives
The Power of Customer Advocacy and Referrals
Nick Lazar-Mostalbari, operating advisor at Verdein, discusses the importance of customer advocacy and referrals. He emphasizes the value of turning satisfied customers into advocates who promote your product or service to others. By focusing on delivering exceptional experiences and value to customers, businesses can earn the right to ask for referrals and benefit from the organic growth that comes from customer advocacy.
Understanding Earned Growth Rate
Nick introduces the concept of earned growth rate, which measures the impact of customer success efforts and the overall experience delivered. By combining net revenue retention with the percentage of new customers influenced by referrals, businesses can calculate their earned growth rate. This metric provides a more comprehensive understanding of the total effect of customer success on overall growth. Nick highlights the importance of understanding and measuring customer advocacy and referrals to tap into the decentralized world of sales and marketing.
Building a Customer Marketing Team
Nick emphasizes the need for companies to invest in a dedicated customer marketing team. This team focuses on activities and initiatives aimed at leveraging existing customers to create content, engage in the community, and promote advocacy. By collaborating closely with the customer success team and aligning with the company's value proposition, a customer marketing team can drive customer success, highlight customer stories, and foster stronger relationships. Nick shares examples of how companies are successfully implementing customer marketing strategies and showcases the impact it has on customer advocacy.
Acquiring the Right Customers for Sustainable Growth
Nick highlights the significance of acquiring the right customers to ensure sustainable growth. He stresses that companies should thoroughly understand their ideal customer profile and focus on attracting customers who are highly likely to experience value, grow, and become advocates. Acquiring poorly fitting customers leads to increased churn and hinders a company's long-term success. Nick encourages businesses to segment their customers and continuously learn from existing customers' experiences to shape their targeting and acquisition strategies.
In this episode, we speak with Niclas Ramon Staberg, Operating Advisor, Verdane the specialist growth equity investment firm that partners with tech-enabled and sustainable businesses based out of Europe to help them reach the next stage of international growth.
We talk with Niclas about the new concept of Earned Growth that is gaining momentum in the B2B SaaS space - here are some of the questions that are addressed in this episode:
- What is Earned Growth Rate and why does it matter
- What is Customer Referral Value
- How do you activate customers to be referrals
- Which are the key metrics to monitor in this process
- What special needs are put on the organization to be successful with this
These are some of the many topics we address with Niclas, tune in to listen to how the process of Earned Growth is vital for continued and scalable revenue growth.
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