What feedback would your customers give you?
Customer loyalty and satisfaction is key to business growth but do you know just how hard it is to get and keep loyalty?
What would you score yourself from 1-10? Let’s be clear, we’re not talking about your personality or what you see in the mirror. We’re talking about the quality of products and services you provide to your customers. Did you know, a score less than seven out of ten means customers are dissatisfied or ambivalent towards your service? Research conducted by Dixa highlights that ‘93% of customers will read online reviews before making a purchase, with 47% spreading the word about a positive experience while 95% will talk about a negative experience.’ Your customers are almost twice as likely to speak about a negative experience compared to a positive one. Isn’t there an age old saying about dissatisfied customers talking about their experience to ten others? So, with positive customer feedback harder to get, what does your organisation have in place to limit negative experiences?
Detractors, passives and promoters
What are they? Detractors, passives and promoters are customer categories in the net promoter score. In simple terms, the net promoter score (NPS) is a customer satisfaction and loyalty measurement taken from asking customers how likely they are to recommend your product or service on a scale of 1-10. Is the Net Promoter Score even relevant any more we hear you ask? Yes, it is, and here’s why. The NPS exists to help businesses improve on a customer’s experience at every touch point in their journey covering; research, point of sale, service, product and customer support to improve customer loyalty and retention.
So, the customer categories, what do they mean?
- Detractors are customers who would score your company 0-6 out of 10, these customers typically experience a bad experience and form part of the 95% above who will happily sign from the rooftops about their experience.
- Passives would score your company either 7 or 8. Passives are customer who are satisfied with your service but not happy enough to be considered loyal customers who would actively promote your brand.
- Promoters score between 9 and 10 and they’re your top-notch customers. People who enthusiastically and loyally promote your company.
As a business metric your net promoter score can be used as a predictor of business growth; it can be used to help you understand where your customer has pain points as opposed to gain points in their journey with you, and what you can do to help them. If 95% of customers are willing to talk about a negative experience and you don’t reach ‘promoter’ customers until your organisation scores a 9 or 10, prioritising customer experience holds the key to maximising retention and providing value to your organisation.
The net promoter score focuses on delivering value to organisations who are looking to increase customer loyalty and retention. It’s a valuable metric at a strategic level but the NPS score doesn’t do enough to give you all the context (the full picture), like all data sets, your NPS score shouldn’t be used in a silo. Behavioural customer data, the actions, needs and motivations of your customers should also be collected from the first touch point your customers have with you; your website, a phone call, a conversation.
Do you want to revisit the score you gave yourself at the start? Taking the time to holistically look at your current internal processes that aid your customer experiences, could make all the difference to customer retention and your organisational growth.