Some companies follow up a transaction by sending you a lengthy survey that may take five or ten minutes or even longer to complete. In other words, after you have given the company money, it rewards you with a “homework assignment.” There has to be a better way!
Shep talks with Chad Keck, CEO and co-founder of Promoter.io, about a simple but scientifically proven method of measuring customer satisfaction – the Net Promoter Score.
Word of mouth is the best form of marketing for your business, but how do we actually put that into practice? Customers can feel strongly, either positively or negatively about your brand, which impacts referrals and recommendations. Capitalizing on positive word of mouth is the key to driving long-term sustainable growth.
The unique feature of the Net Promoter Score is that it gives you a consistent, method-drive approach to determine if customers are satisfied or dissatisfied. Net Promoter Score asks, “How likely are you on a scale of 0 to 10 to recommend this company?” So how does the customer feel about your brand? Are they willing to put their name and reputation on the line to recommend you?
Consumers tend to pause as they think about the question. This causes them to be more critical, which drives out more candid responses. Along with the follow-up, open-ended question of “‘What is the most important reason for your score?” this ultimately gives you the best kind of data to use to understand what you are doing well, or what you are not doing well and thus where you need to improve.
Part of the beauty of the Net Promoter Score is the very short and concise format of the survey.
The completion rate of the typical customer survey (the “homework assignment” mentioned above) is typically 3 to 5 percent. On the other hand, the Net Promoter Score, implemented properly, will usually generate a response rate of between 30 to 40 percent!
With the Net Promoter Score, we can identify which customers are likely to recommend us. We can then begin to strategically engage them individually, which is a critical (but often neglected) part of the process.
We are also more likely to identify which customers will churn or spread negative information, and deal with them appropriately. Without the Net Promoter Score, it would be very difficult to take those actions, especially if we received a very low survey response rate.
The Net Promoter Score helps us to break down customers into three groups: promoters, passives and detractors. We then need to engage customers based on the patterns they fall into. Finally, the Net Promoter Score represents a single score or metric we can easily trend over time.
Chad Keck is the CEO and Co-Founder, Promoter.io, which helps companies measure the true ‘voice of the customer’ by allowing them to easily build Net Promoter Score campaigns.
“There is not better use of your time than cultivating customer relationships, and continually learning from customers, ideally on a daily basis. Every aspect of customer loyalty comes from how strong the relationship is with the customer.” – Chad Keck
What questions will this episode answer?
- What is a Net Promoter Score?
- When should you administer the Net Promoter Score survey?
- Why is a Net Promoter Score such a good measure of customer satisfaction?
- How do you turn Net Promoter Score into a profit center?
- Why is it critical to follow up with customers who respond to a survey, either positively or negatively?