Business Strategy

5 Reasons Why a Best in Class Designation Predicts Success

04.27.2023 3 Minutes

Best in class organizations — those that are recognized by their industries as top performers and named as best places to work by their employees — outperform their peers across several key performance indicators: sales, client retention, referrals and net promoter score, trust, and reputation.

Stronger cultures that attract and retain talent

When you look at successful companies that show profit and growth year-after-year, there are certain patterns that show up consistently, especially around guiding principles that clarify the why, what, how, and who of their company.

Businesses that clearly articulate their guiding principles at all levels of the company create a culture that not only attracts employees but keeps them highly engaged. When team members see authenticity in the purpose, vision, mission and core values, the result is a safe place to thrive and grow.

Higher win rate on new business

Businesses that place a greater emphasis on improving the client experience tend to win new business at a higher rate than their peers — and bring in 5.7 times more revenue than competitors that lag in this area.

High performing companies focus on understanding client needs, addressing their pain points and creating frictionless interactions long before any contract is signed. This lays the groundwork for building trust and long-term relationships.

Longer retention rates for existing clients

For many of the same reasons, these high-performing businesses also tend to retain clients longer, and receive proportionally more business from each client than their peers.

Through an intense focus on quality and an ability to avoid unnecessary complexity, these companies provide exceptional client experiences that elevate their offerings and create loyalty.

More referrals from clients and employees

Our research shows that people are more likely to refer a business that has a best in class reputation to their network of colleagues and friends. Many businesses choose to measure their performance in this area using metrics such as Net Promoter Score — a basic survey that asks the question, “How likely is it that you would recommend [your organization] to a friend or colleague?”

In our experience, high-performing companies have scores that outperform not only their industry, but also place them alongside the best of any firm that uses this measurement system.

Stronger reputation for success in the market

Our research on best in class companies found that 71% of B2B professionals said that a best-in-class reputation on the part of a business service provider would have a greater impact on their consideration than the provider’s marketing. Further, 77% stated that a best in class reputation would “probably” or “definitely” make them more likely to refer a business to others.

Nurturing a best in class reputation is critical for driving success at an organizational level, because B2B professionals consistently express that reputation is a primary consideration when choosing a new partner or recommending a business to a peer.

The importance of a best in class reputation

There are significant benefits to having a best in class reputation. Our research shows that all high performing companies consistently exhibit nine key traits and when done well across the brand, employee and client experience, companies not only show up but  stand out.

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