But what does it consist of? Why was this update necessary?

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How can b2b organizations measure it? And how does it relate to business results? Let's answer those questions here. What is earned growth? It's no secret that customer marketing, customer success, and customer happiness are the foundation of some of the fastest business growth rates in recent years. In both new and traditional businesses, the most successful earn their growth thanks to the quality of their services and products, that is, the quality of the customer experience. When you earn growth, the value of your product meets your customers' expectations and they come back for more, spend more and more money, and recommend your company to their colleagues and friends. Imagine you have two companies, a and b, both with an annual revenue growth rate of 20%. Company a derives most of its growth through net revenue retention (I.E., expanding existing customer accounts) and new customers gained (I.E., customer referrals).



This company has good earned growth: it is earned; it is less risky; it is sustainable; and shows a coherence between customer expectations and the value of the product. Company b grows at the same rate, but buys its growth. Most of that 20% comes from new marketing and sales campaigns. This earned growth can be manufactured by Buy Bulk SMS Service spending more on acquisitions, deep discounting, and adding risk to the customer base. Such a high growth rate is usually unsustainable without external capital. What company would you prefer to be? Why was it developed? The concept was introduced by fred reichheld and maureen burns in their harvard business review article, nps 3.0. As the name of the article suggests, it was developed as the next generation of nps because an evolution was sorely needed. Let's look at some key points: net promoter was at risk of becoming a vanity metric. Inexperienced nps practitioners created bias by tying nps to top-line bonuses or reporting their scores publicly without explaining how many customers were surveyed or without other key supporting metrics.






To make the net promoter work as it should, fred and maureen developed earned growth to “illuminate the quality of a company's growth”; now the nps must be supported by audited revenues that do not contain any bias. Maureen came on our podcast to talk about customer love. She notes that as an accounting-based metric, earned growth links experience directly to financial results. For too long, cx professionals have struggled to demonstrate the roi of their work, but now they have the opportunity to do so. As we mentioned here years ago, the first step in demonstrating the financial value of a voice of the customer program is to actually measure retention and referrals, something very few companies do. References are underrated. Today's companies underestimate references. They treat them as the icing on the cake and not as an essential (perhaps the most essential) ingredient for sustainable growth. The growth gained brings them to the forefront of the c-suite strategy. In short, their goal was to restore credibility and authority to customer experience programs and give professionals the tools to do so.