I read a Wired article over this past weekend that really struck a chord. The article referenced a recent speech given by U.S. presidential candidate Hillary Clinton at New York University's Stern School of Business who argued that undue earnings pressures on executives at public companies are suppressing wages and having a detrimental effect on innovation and long-term growth opportunities among U.S. companies. While this blog post isn't intended as an endorsement for any particular political candidate, the Wired article serves as a reminder that focusing too much on hitting quarterly earnings targets can also have a negative impact on customer experience.It's a topic that both Don Peppers and Martha Rogers, Ph.D., founding partners at Peppers & Rogers Group, have spoken about often. For instance, Rogers shared that the fallacy of focusing entirely on quarterly earnings at any cost "is an unreasonable pressure on any business that wants to look out for the long-term value of its customers."
Another defect of "short-termism" cited by Peppers and Rogers is that it all too often leads decision-makers to push a product or service that isn't necessarily in a customer's best interests simply to meet a sales target for a particular period.
Companies that provide consumers with relevant messaging and offers that are based on customer's interests and needs stand to develop stronger, more trustworthy customer relationships. As Peppers points out in one of his LinkedIn posts, "Customer relationships are the bridge between current profits and future shareholder value...If customers are served well today, your business will be more profitable tomorrow, irrespective of today's numbers."