Sales growth isn’t a guessing game; it’s the mathematical result of aligning your company performance with customer expectations.
And we can prove it.
Why Companies Lose Sales
Most companies believe they deliver strong value to customers. But customers often experience something different.
The difference between what customers expect and what companies actually deliver creates a Value Gap.
And when your gap is larger than your competitors, sales are lost and customers churn. Close that gap and sales are won.
For decades, executives have been sold that you will grow sales by increasing your customer Net Promoter Score® or satisfaction levels. Yet, many companies with higher NPS, better quality, and more responsiveness lose sales to their rivals every single day. It’s confusing. It’s frustrating. It’s not necessary.
Traditional, rear-view metrics like NPS or satisfaction create blind spots for executives. What you need is to deliver more customer value.
The W Ratings platform was designed to measure and close the value gap between what your customers expect and your company performance.
From Static to Dynamic
Traditional analytics give you a printed map. If there’s a roadblock, you are late or worse yet, you crash into it.
Our platform acts like a real-time GPS. It takes your current performance, absorbs real-time market signals from customer perception and internal operating metrics, and instantly recalculates the fastest, safest route to sales growth.
Because our platform is continuously learning, it doesn’t just show where the value gap is; it shows which specific actions have the highest mathematical probability of closing it.
We measure three sources of value, including the initiatives a company utilizes to create – or not create – customer value. A “not created” value initiative is wasted effort, where cost savings are found.
When the initiatives with the most success get written back into a company across countries, locations, and/or segments, value creation becomes dynamic due to the ability to learn/grow on a continuous basis.
We call this Moneyball for Sales Growth.
The Engine of Proof
The W Ratings platform uses Bayesian analysis, a method widely used in advanced decision systems at successful companies like Amazon (probability a customer will purchase), Netflix (probability a user will watch a specific title), and Google / Meta (probability a user will click an ad). The same reasoning used by the world’s most advanced digital companies can be applied to customer value improvement.
So does improving value, measured by closing the gap between customer expectations and company performance, actually translate into sales growth? Based on performance data of the W-30 companies over the last 5 years, the answer is a definitive ‘yes.’
Running a Bayesian analysis to stress test the data shown in the chart, the model returned a 99.9% confidence score. The probability that improving customer value leads to sales growth isn’t just high; it’s nearly certain.
Across companies using the W Ratings platform, Bayesian analysis consistently shows that improving value gaps increases the probability of sales growth.
Closing the gap between customer expectations and company performance is one of the most reliable drivers of sales growth.
Additional Evidence
One of our hedge fund investors started a portfolio based on the top 25 ranked companies in our benchmark database. The portfolio, shown in the image, has continually out-performed traditional benchmarks such as the Russell 2500 (Total Return).
Since 2017, our data is one of the key customer data sources to rank the Top 250 Managed Companies by the Drucker Institute. The Wall Street Journal publishes the annual rankings near the end of each calendar year.
The business management community has vetted our research, which you can read about in the May 2002 cover article in Harvard Business Review.
Since 2008, the hedge fund community has continually licensed the use of our benchmark data to make investment decisions. Our data is baked into dozens of ETFs/Mutual Funds traded publicly.