A Customer Loyalty Metric to Trump them All

Every company will strive to create loyal customers that won’t go astray.

But truthfully, most fall short. Only an elite selection of companies actually posses fanatical customers that wouldn’t even consider going to another business or employing another service. And creating customer retention is a matter of operational management.

In order to gauge customer satisfaction, every company should be using a little-known metric called NPS, otherwise known as the Net Promoter Score. To begin, through a medium of your choice, ask your customers a simple question: “On a scale of 1 to 10, would you recommend us to a friend?” You then take every customer who scored your company 6 or lower and subtract that from every customer who scored you 9 or higher (7s and 8s are neutral and can be ignored). What your left with is a net percentage of how many customers would recommend your company versus those that wouldn’t.

The best companies, such as Google or Amazon, typically score between 70 and 75 percent. Shoot for that star. For more on this subject, watch the full video from OpenView Labs featuring Bill Price.

Corey O'Loughlin
Corey O'Loughlin
Owner

Corey was a marketing analyst at OpenView from 2010 until 2011. Currently Corey is the Owner of Prep Obsessed and was previously the Marketing Manager at MarketingProfs.
You might also like ...
Customer Success
How Can Startups Enforce the Right to Disconnect? Use Customer Success Philosophies

Remote work is the new norm, so is it time to institute a “right to disconnect” policy for your team?

by Claire O'Regan
Customer Success
Usage-Based Pricing Playbook: Customer Success Is A Mindset, Not Just a Job
2021 has proven to be the year of usage-based pricing.  45% of expansion stage SaaS companies now say they have...
by Kyle Poyar
Customer Success
5 Stats That Prove Customer Service Enablement Should Be the Next Sales Enablement

The customer service agents on your team—whether you’ve got one or 1,000—are the frontline of your business. They impact your bottom line, attrition, NPS and more, and it’s time we enabled them to be exceptional in their customer interactions and careers.

by Olivia Schwan