Now that you have a rock-solid customer value proposition, you can get to work digging a deep trench into your market position by gaining more customers, more often.
And your worst fear is outlined in “I’m the Nice Customer … Who isn’t Coming Back”. If you haven’t read this, please have your team read it immediately.
But since you are executing the 10 Commandments of Legendary Customer Service, your team is on track and your business is eagerly serving new and repeat customers, with a smile.
So, what’s next?
Marketing and Innovation, of course.
But to market, innovate and produce more products and services (value), let’s get a strong pulse on what your customers really think. Because you probably don’t have the whole story.
Let’s start by getting some customer feedback. After all, this is market research at its best.
There are many strategies for customer feedback. I have a few preferred methods to find out exactly how your customers really feel about your brand (two methods which I don’t reveal in this article are reserved for my personal customers who want to turbo-charge sales).
Here’s a strategy worth knowing…
It’s called the Net Promoter Score (NPS). And it’s used by the biggest companies on the planet. You have probably used it yourself, maybe without knowing.
The purpose of the NPS is to categorize a company’s customers into 1 of 3 groups:
NPS is generated by asking customers one question:
How likely they would recommend your business, product or service to a friend or colleague?
— Ranked on a scale of 0 to 10, 10 being best
Those giving a response of 9 or 10 are promoters. A score of 7 and 8 are passives. A score of 6 or below are detractors.
Your net promoter score is the percentage of the promoters minus the percentage of the detractors.
So here’s an example of what this looks like, for a local IT services company.
A survey was filled out by 375 customers, via email, direct mail and while “in the shop:
- 84 were in bucket #1: 9’s and 10’s: 22%
- 229 were in bucket #2: 7’s and 8’s: 62%
- 62 were in bucket #3: 0’s thru 6’s: 16%
The Formula: Bucket 1 – Bucket 3 = 22 – 16 = 6
The NPS Score = 6
A score of 6 sounds meaningless, doesn’t it?
It basically is, by itself. That’s why you need to measure your score against the industry.
If you are in the cable TV or ISP business, you may be leading the pack. But if you are in a specialty services niche, you have your work cut of for you.
But still, the higher the score the better.
So, what is a good score?
NPS scores vary widely, especially among industries. Typically, well-known, popular companies like Amazon, Apple, Costco and Nordstrom may get scores of 50-80, which are absolutely fantastic. A score of 20 or better is a great score, while 30-40 is very, very good.
If you are getting a negative number, it may be time to look for a new business. Or, time to hunker down and find out what is going on and start making your customers happy. In fact, analysts at a German manufacturing company found that for every 10% improvement in their NPS score, they realized a 7% increase in their revenue growth.
Coincidentally, they also found that their NPS scores spiked when their sales reps visited their dealers three times, and began to fall with more frequent visits.
More proof that simply asking your customers what they want is a wise starting point.
About Your Strategic Marketing Partner
Sam Hirschberg, MBA, is Your Strategic Marketing Partner. Always professional and a delight to work with, Sam is not a typical “marketing consultant”. Unlike most consultants, Sam doesn’t just tell you that you have a problem and say, “See you later and good luck!” He knows how to find solutions, execute programs, test and measure campaigns, and how-and-when it’s time to roll-out big! You are invited to call (602) 892-0777 to learn more about Sam’s background on his FREE 9-minute recorded message. For more information about Sam, please visit https://strategicmarketingpartner.com.