Measuring customer satisfaction

We often hear stories about how essential it is to "create raving fans" or "a community" but how can you measure customer satisfaction aside from sales? Here we discuss an effective, yet simple customer satisfaction survey you can use on an ongoing basis.

In the digital world you could use "views", "clicks" or "opens" to measure engagement. In the offline world you could use "number of contacts" or "response rate". However have you ever considered using another method used by many large businesses...

One way is to use a measure like the Net Promotor Score

The Net Promoter Score (NPS) is a customer/client loyalty metric for using customer feedback to continually measure and improve customer loyalty to improve profits.

Adopted by companies like General Electric, P&G, and American Express, the NPS is derived from a single question posed to customers/clients:

“How likely are you to recommend [Company X] to a friend or colleague?”

Survey participants respond on a 0-to-10 point rating scale divided into three groupings:

  • Promoters (score 9-10) are loyal enthusiasts who will continue buying and
 will refer others, fuelling growth.

  • Passives (score 7-8) are satisfied but unenthusiastic customers who 
might be receptive to competitive offerings.

  • Detractors (score 0-6) are unhappy customers who can damage your 
brand and impede growth through negative word-of-mouth.

To calculate the Net Promoter Score (NPS), you simply subtract the percentage of Detractors from the percentage of Promoters.

Studies examining the NPS “loyalty effect” have shown that companies with the highest customer loyalty typically increase revenues at more than twice the rate of competitors. 

So consider using the NPS in your business on a regular basis to effectively measure if your level of customer service is increasing, staying the same or decreasing.

Kym Heffernan

Kym Heffernan

Kym works with Businesses and Professional Practices through The Marketing Strategy Company, to increase their revenues through analysing, improving and optimising their marketing and sales activities.

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