I was inspired by Caribou Coffee to make a ‘spicy mocha’ at home. My husband thought I was making one for him, too. “Um, that was not my intention,” I said, knowing he doesn’t like espresso. In jest, he said, “Well… Then, I’m submitting a low customer satisfaction rating.” I laughed, and suggested he keep his Net Promoter Score 1 to himself. With a smile, I continued, “Oh…and you are welcome to take your beverage business elsewhere!”
What feedback are you getting from your clients or customers? If you asked them, “How likely is it that you would recommend [my services/products] to a friend or colleague,” how many would give you ‘Promoter’ score of 9 or 10 (on a scale of 0-10)? How many would respond ‘Passively’ with a 7 or 8? How many would be ‘Detractors’, submitting a score from 0 to 6?
A typical business only hears from 4% of its dissatisfied customers – the other 96% leave, 91% for good. 2 – Jim Barnes, Secrets of CRM
The problem with Detractors:
- Most are just GONE. The silent, dissatisfied customers just disappear taking their business elsewhere. No nasty-gram, just a drop in current sales, ongoing loyalty, and future growth.
- YOU only hear from a few. The 4% that stick around to give you feedback represent themselves and the other 96%. Though hard to receive, the message is very important!
- EVERYONE ELSE is hearing from most of them. Though they didn’t report their dissatisfaction to you, according to 2012 Global Customer Service Barometer, “consumers are 2 times more likely to share their bad customer service experiences than they are to talk about positive experiences.” 3 (Ouch!)
- They are harder to make happy. Keeping happy clients happy is much easier than turning unhappy clients into happy clients. Parature reports, “It takes 12 positive customer experiences to make up for one negative experience.” 4
NPS% is a simple, qualitative, and informative especially when combined with customer comments! Since the Council of Financial Competition reports “it costs between 5 and 10x more to attract a new customer than to keep an existing one,” 5 it is worth every effort! Fortunately, for me and my “spicy mocha” situation, I was able increase my rating to a “10” by making a Chai Tea for my husband… Yep, sometimes customers don’t know what they want, but they are ALWAYS right!
1 Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld
2 Beyond Philosophy
3 2012 Global Customer Service Barometer via Sales Force Blog
4 Parature via Sales Force Blog
5 The Top 9 Ways to Increase Your Customer Loyalty (PDF)
|ABOUT THE AUTHOR: Michelle Sugerman, an Executive Business Consultant with Leading Synergies, helps high-performing executives refine strategy, inspire teams, and delight clients (specializing in information technology, project management, consulting, and franchise management). She also leads Synergy Groups, weekly 55-minute virtual business mastermind calls for REALLY BUSY Christians in leadership. Michelle lives in Colorado where she hikes fourteeners and enjoys gourmet meals with her loving husband of 20 years.|