On Valentine's Day, will your customers LOVE or even LIKE you?
“Customer loyalty” That old chestnut…
Company leaders will tell you one measurement of customer loyalty is the bottom line. The problem with this measurement is that while it’s important to have a profitable business, the bottom line doesn’t really help you find out who your best customers are, that contribute to the bottom line.
Wait a minute – how about a simple report showing sales from each customer. That’ll do it – easy! Or will it?
Could you be generating more sales from your best customers? What about the customers with lower than average sales, or worse - those on your books with no sales over the last 12 months! What’s the deal there?
What would it mean to your business if you knew which of your customers liked or loved you? Could that impact future revenue and profitability?
Well, in actually fact you can find this out quickly and easily. Here’s the number ONE number you need to grow – the Nett Promoter Score.
The Nett Promoter Score is based on the fundamental perspective that every company's customers can be divided into three categories:
- Promoters
- Passives
- Detractors
By asking one simple question — How likely is it that you would recommend [Company X] to a friend or colleague? — With intelligent business software, you can track these groups and get a clear measure of your company's performance through its customers' eyes.
Customers respond on a 0 to 10 point rating scale and are categorised as follows:
Promoters (Score 9-10) are loyal enthusiasts who will keep buying and refer others, fuelling growth
Passives (Score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings
Detractors (Score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth
To calculate your company's Net Promoter Score (NPS), take the percentage of customers who are Promoters and subtract the percentage who are Detractors.
So there you have it – the quickest, easiest way to find out of your customers love you this Valentine's day.
Now, much as we’d LOVE to claim credit for this system, we can’t. If you’d like to know more, try http://www.netpromoter.com/
If you need better reporting software for your business, have a look at our Business Intelligence Resource Centre for free whitepapers, videos and more!
Much love
Sybiz