In June of 2016, the Bassett service division implemented the use of the Net Promoter survey for our preventative maintenance customers. After finding great success in the use of the survey and the results it provided, we now have plans to roll out the customer survey throughout Bassett to other divisions.
Net Promoter or Net Promoter Score (NPS) is a tool that is used to assist companies in gauging customer loyalty and provide insights on how to strengthen those customer relationships. Net Promoter is used across a multitude of industries including retail, air transportation, industrial goods and services, financial, healthcare, technology and more. Many industries are using Net Promoter to evaluate performance, customer experience, and how they compare to the competition.
HOW DOES NPS WORK?
The Net Promoter program consists of two simple survey questions. The first question is basic and universal regardless of the industry: “how likely are you to recommend our company to a friend or business associate?”. The customer rates the company on a scale of 0 to 10. This initial question focuses on customer loyalty.
Depending on the number chosen in question one, a second question populates. The second question is typically geared toward asking “why” a customer gave a specific score and includes a text box for comments, suggestions, and feedback. If a customer-rated the company as a “9” on the first question, the second question may ask which aspect of the business they were impressed with or what they would like to see continue. If a customer chose a “3”, the follow-up question may ask why they were disappointed. While not all responders will take time to give detailed feedback, the responses to these open dialogue questions are invaluable in addressing ways to improve a company and its services.
HOW IS NPS SCORED?
A customer who responds with a 9-10 is designated as a business PROMOTER. A score of 7-8 is a business PASSIVE, and anything 6 or below is considered a business DETRACTOR. Your Net Promoter Score is the percentage of detractors subtracted from the percentage of promoters. Meaning if 64% of all your responders are Promoters, and 4% were Detractors, your Net Promoter Score would be 60%.
Net Promoter is a widespread and growing tool. Through its ability to provide a method for open communication, it can help identify at-risk customers along with ways to improve our customer’s experience. As if customer relationship building and growth weren’t enough, the system itself also provides metrics and analytics giving further details based on specific trends in responses allowing you to dig deeper into root causes.
WHAT DO YOU DO WITH THE RESPONSES?
Timely action is key. Our goal is to respond within 24 hours to any customer when an issue is expressed through our Net Promoter survey. Through this practice, we show our customers that we value our relationship and do our best to communicate quickly regarding their concerns. Sarah Frazier, Digital Content Manager at CustomerGauge, educates the market on the importance of employing a customer-first focus using metrics like the Net Promoter Score. Her articles indicate that research also confirms that the response within 24 hours allows for a 10% higher customer retention rate, solidifying a solid return on investment.
The bandwagon is passing you by… jump on! This is a management tool that isn’t fading quickly in any marketplace and is incorporated into other tools such as CRM (Customer Relationship Management) platforms. It is referenced by other companies and a standard bar or metric in the marketplace.
“People will start asking companies for their NPS score, it is actually a way of empowering customers.”
In her articles, Frazier references many companies already using and applying the Net Promoter tool. Apple, for example, is a known advocate for Net Promoter and introduced it into their company in 2007. Since adopting this tool, they have achieved one of the highest scores in any industry (a lofty 89% in 2016), and have engaged all of their employees with the daily use of the tool including daily meetings to review and take action on the feedback received.
Frazier also mentions David Tudehope, CEO Macquarie Telecom Group, as another known user and supporter for Net Promoter. Tudehope says “keeping track on the state of NPS in your particular industry and learning best practices from the best performers is one of the key ways to increase growth and retention using NPS.” He even goes so far as to forecast “people will start asking companies for their NPS score, it is actually a way of empowering customers.”
Bassett Mechanical is committed to continuing our Net Promoter journey. It is a building block for our customer relationships and continuous improvement program, and one of the many ways Bassett Mechanical is Creating Customers for Life®.