Then ensure that all business functions-not just market research-own and accept the survey process and results. Be sure that everyone in the company knows which customers they’re responsible for.
Use your score to send a clear message to managers and employees about the importance of promoters-and the dangers of detractors. How does your company stack up against the very high bar of 75% to 80% net-promoter score? Motivating Change Also survey your competitors’ customers using the same method. Uncover root causes of differences and share best practices from your highest-scoring groups. For example, compare your company’s scores region to region, branch to branch, sales rep to sales rep, and customer segment to customer segment.
#Scoreland magazine subscripton how to
Your net-promoter score provides valuable insights into how to get more promoters and fewer detractors. Companies that garner world-class loyalty receive net-promoter scores of 75% to more than 80%. Then subtract the percentage of detractors from the percentage of promoters. The Idea in Practice Calculating Your Net-Promoter ScoreĪsking a statistically valid sample of customers “How likely is it that you would recommend our company to a friend or colleague?” enables you to calculate your net-promoter score: the ratio of promoters to detractors.īased on their responses on a 0 to 10 rating scale, group your customers into “promoters” (9–10 rating-extremely likely to recommend), “passively satisfied” (7–8 rating), and “detractors” (0–6 rating-extremely unlikely to recommend). Your message to employees-“Get more promoters and fewer detractors”-becomes clear-cut, actionable, and motivating, especially when tied to incentives. You also get responses you can easily interpret and communicate. And they’ll take that risk only if they’re intensely loyal.īy asking this one question, you collect simple and timely data that correlate with growth. Why is willingness to promote your company such a strong indicator of loyalty-and growth? Because when customers recommend you, they’re putting their reputations on the line. You only have to ask your customers one question: “How likely is it that you would recommend our company to a friend or colleague?” The more “promoters” your company has, the bigger its growth. The good news is: you don’t need expensive surveys and complex statistical models. But most of the yardsticks they use are complex, yield ambiguous results, and don’t necessarily correlate to profits or growth. Many companies-striving for unprecedented growth by cultivating intensely loyal customers-invest lots of time and money measuring customer satisfaction. By substituting a single question-blunt tool though it may appear to be-for the complex black box of the customer satisfaction survey, companies can actually put consumer survey results to use and focus employees on the task of stimulating growth. The findings point to a new, simpler approach to customer research, one directly linked to a company’s results. And they will risk their reputations only if they feel intense loyalty. When customers act as references, they do more than indicate they’ve received good economic value from a company they put their own reputations on the line. Willingness to talk up a company or product to friends, family, and colleagues is one of the best indicators of loyalty because of the customer’s sacrifice in making the recommendation. In most of the industries studied, the percentage of customers enthusiastic enough about a company to refer it to a friend or colleague directly correlated with growth rates among competitors. Surprisingly, the most effective question wasn’t about customer satisfaction or even loyalty per se. This finding is based on two years of research in which a variety of survey questions were tested by linking the responses with actual customer behavior-purchasing patterns and referrals-and ultimately with company growth. The best predictor of top-line growth can usually be captured in a single survey question: Would you recommend this company to a friend? Companies spend lots of time and money on complex tools to assess customer satisfaction.