What’s the best way to measure customer satisfaction?
Hands up everyone who gives great customer service! How do you know? Really know?
Extensive research has shown that your Net Promoter Score (or NPS), can act as a major indicator of growth. If your organisation’s NPS is higher than those of your competitors, you are likely to outperform the market. Managing your business to improve NPS will also improve your business performance.
Simply asking customers ‘were you happy with our service?’ does not get to the heart of their relationship with your business. Net Promoter Score is based on one simple, significant question; ‘ on a scale of 0 to 9, how likely are you to recommend Company X to your friends and associates?’.
Those that rate you 8 or or 9 are promoters. They’ll go out of their way to recommend you. Those that rate you 6 or 7 are ‘neutral’ or ‘passive’. Anyone else is a detractor. Hurts, doesn’t it?
NPS is calculated by subtracting the detractors from the promoters. So, out of 100 people asked, if I have 30 promoters and 10 detractors I have an NPS of 20, which is pretty good for most businesses.
I’m currently working with a client who has recognised the importance of NPS as a way of building the value of their business. After all, if you were buying a business, wouldn’t you want to know that customers where happy? NPS removes the anecdotal nature of customer satisfaction, and conducted on a regular basis (perhaps every 6 months) provides a credible account of a business’s customer satisfaction journey.
Whether you are aiming for faster growth, a higher business valuation or increased profits, you might like to use NPS at the centre of your customer satisfaction measurement framework.
Ask us for a free initial consultation (as always) and we’ll show you how.
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