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Why Don't More Firms Use NPS for Customer Loyalty?

Posted by Tom Smith on Fri, Nov, 01, 2013 @ 06:11 AM

Net Promoter Score

 

 

 

 

 

 

Having used Net Promoter Score for several years to get customer feedback and begin a dialogue with the customer, I'm perplexed why more B2C and B2B firms aren't using it.

It's easy to implement and easy for customers to complete.

It provides a great opportunity to learn who's a "promoter" and who's a "detractor."

Are companies afraid to hear what their customers think about them?

Do they not care?

Given the better financial performance of firms that provide outstanding customer service, and have high NPS scores, you would think more companies would use this valuable, inexpensive tool.

I recommend every company employ a three question survey that will let them know what their customers think about their products and services, as well as the fact they even care what their customers think of them.

  1. On a scale of 0 to 10, 10 being "extremely likely," how likely are to recommend __________ to your family, friends or colleagues?
  2. Why did you give us that score?
  3. What would it take to earn a 10?
This survey can be fielded in-person, via email or snail mail and takes the customer less than five minutes to complete.
It provides the company fielding the survey with tremendous insights:
  • Do your customers like what you're doing well enough to recommend it to others?
  • What do your customers see you doing "different and better?"
  • What can we do to improve our product, our service, the customer experience?
  • Who's a "promoter?"
  • Who's a "detractor?"
  • What do we need to do for the "detractor" to address their concern(s)?
  • What can we do to move "passives" to "promoters?"
  • What's happening to our Net Promoter Score -- are we improving or going backward?
If you'd like some help letting your customers know you care what they think about you, as well as invaluable insights for improving your business, let me know.
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Tags: net promoter score, referrals, promoters, passives, detractors, customer satisfaction measurement and improvement