Measure Customer Satisfaction

Posted by: Today's Tip Contributor on March 15, 2011

You have spent a considerable amount of time and resources creating a fantastic customer experience. Now, how do you measure the satisfaction and loyalty of your customers in order to validate your efforts? One simple and effective way used by such companies as Apple and USAA is the "net promoter score."

Calculating your NPS is a simple process. First, survey your customers and ask how likely it is they would recommend your company to a friend or colleague. Give them with a 0-10 scale (with 0 being least likely to recommend and 10 being most likely to recommend). Those who indicate a 9 or 10 are "promoters." Those who indicate a 7 or 8 are "passives." The rest are "detractors." To calculate your NPS, take the percentage of all respondents who are promoters and subtract the percentage of all respondents who are detractors. That’s it. Now you have a number that you can use as a benchmark.

There are a few important things to note. First is that the NPS is just a number. Without understanding why your customers rated you the way they did, you will have no way to improve the score over time. When you ask your customers to rate you, be sure to follow up with a question about why they love you or what you can do better. Second, ask those promoters if they will be a reference for you. It’s the promoters who are crucial to helping you build your brand and your company.

Thompson Morrison
Chief executive
FUSE Insight
Portland, Ore.

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