Although I have written many times about customer satisfaction and how good experiences positively impact customer lifetime value, I have not presented a good way to measure it. As we all know, if you do not measure something, it usually does not get done. A recent article in Bain & Company’s Insights newsletter, “Who Should Run Your Net Promoter System,” does a great job of explaining how to measure customer satisfaction and how to manage the measurement process.
What is the Net Promoter Score?
For such a powerful metric, the net promoter score is very straightforward. It is the answer to one question, on a scale of 1-10: How likely is it that you would recommend the company to a friend? Those who are answer with a 9 or 10 are considered loyal enthusiasts who will keep buying and refer others. Those who answer 7 or 8 are passives, satisfied but unenthusiastic customers who are vulnerable to churning. Those with a score of 0-6 are considered detractors, unhappy customers who can damage your brand and impede growth through negative word-of-mouth. Continue reading “How to measure customer satisfaction”
