PRINCIPLE 5

CUSTOMERS

From Customers to Contributors

What makes eBay successful—the real value and the real power at eBay—is the community.

It’s the buyers and sellers coming together and forming a marketplace.

—Pierre Omidyar, founder, eBay

EVERY COMPANY WANTS TO INCREASE ITS CUSTOMERS’ LIFETIME VALUE AND SHARE OF WALLET. Often, the first step is to measure loyalty. A loyal customer is likely to be a repeat buyer with lower acquisition costs. Perhaps fifteen years ago, companies became sophisticated in their understanding of customer value and began looking at advocacy or promotion. In 2003, Fred Reichheld of Bain & Company introduced the popular Net Promoter Score (NPS), which measures the likelihood of your customer base to recommend your ...

Get The Network Imperative now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.