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.