If you read our last blog post, you know that customer service is an even bigger part of the business game than it ever was before. Not only is it key to keeping current clients coming back, it’s also the key to getting new ones in the door: 90% of consumers read online reviews before they’ll even visit a business, and 88% trust online reviews as much as they do recommendations from friends and family.
As a smart business owner, you know that with so much emphasis on reviews it’s important every customer you already have has a great experience. So you treat them like family; you smile; you make sure they’re totally happy with the product and services.
But how do you really know how they feel?
Return on Investment
Customer service has a direct impact on your revenue. According to a pulse survey by Accenture, in 40% of Canadian consumers will pay a higher price if it guarantees a better level of service. 49% of consumers have left a company because of poor customer service, and 68% say once they have left a service provide, they won’t go back.
So why aren’t you measuring this yet?
The Net Promoter Score (NPS) is a simple, one-question survey that can help your business track customer satisfaction:
Responses are grouped into three categories: Promoter (9-10); Passive (7-8); and Detractor (0-6). Promoters are exactly that – customers likely to promote your business to others. Detractors are those who are likely to give negative reviews, and Passives are those who are neutral – unlikely to make a statement one way or the other.
To calculate your score, you take the percentage of promoters and subtract the percentage of detractors. The remaining percentage is your score.
For example, if a company receives 10 Promoter responses, 4 Passives, and 4 Detractors, their NPS is 33% (55% – 22% = 33%).
In order to know what you’re doing right and what you’re doing wrong, I recommend following up with one or two (but not more!) questions to qualify the response. Why did they choose 9 or 10? What do they love about your company? Or alternatively, what could be done differently for them to score you just one point higher?
Remember, the NPS can be useful to measure a specific transaction (send it out immediately after an experience), but it can also be used to measure overall satisfaction and a client’s relationship with your company overall. We recommend sending a brief survey to check in with your customer base every 6 months.
Finally, don’t forget to measure and track your score overtime. Follow up with clients, learn from your result, and implement tools to improve. It’s your revenue on the line, after all.