- Do you know whether your customers are dissatisfied or satisfied with you?
- Do you know how to measure customer satisfaction?
- Do you know the Net Promoter Score calculation formula?
All this is Very Simple!
To know how to measure customer satisfaction, you need to first understand how to take feedback from the customer. Companies used to take customer feedback through feedback forms.
You need to bring a little change in your feedback form to evaluate whether your customers are also your potential unpaid business developers.
Are they your potential promoters?
Are they positive, neutral, or negative about you?
You can determine this by taking feedback from the customers on a scale of 0-10.
How Your Customers Rate You?
- People who rate you between 0 and 6 are detractors - These are those people who are not at all happy with your company, goods or services. They will post negative things about you on social media. They will write various negative things about you in your customer feedback forms. These people will never recommend you to anyone. They will never allow their family and friends to go to you. In their personal, professional, and social life, they will make sure that nobody goes to you.
- People who rate you between 7 and 8 are neutrals - If someone goes to these people and ask about their experience with your company, goods or services, they will say it was ok or it was fine. These people will neither promote you nor defame you. They will not allow you to put their reputation on stake to be used to favor your brand.
- People who rate you between 9 and 10 are your unpaid promoters - Whenever somebody asks them anything about your industry, they will recommend you strongly. These are those people who will always try your new products and services. Whenever any of your new products come to the market, they will buy it. It is very likely that they can buy your products even at higher prices.
For any organization, it is important to calculate Net Promoter Score (NPS).
(NPS) Net Promoter Score Calculation Formula:
Suppose, if out of 100 people, 40 people give you a rating between 0-6, 10 people have given you 7 and 8 ratings, and 50 people have given you a rating between 9 to 10, then your Net Promoter Score calculation formula will be:
NPS = Promoters (P) – Detractors (D) [+/- Neutrals (N)]
= 50 – 40 (+/- 10)
As neutrals will have no effect on your NPS score, so:
NPS = 50 – 40 = 10%
So, your NPS is 10%, it means that out of 100, 10 people will promote you.
Your NPS should be higher and positive.
Net Promoter Score calculation formula will help you to figure out your current customer satisfaction level, brand loyalty level, and brand loyalty measurement index. This figure will help you to strategize your future plans.
Measure your detractors and make a note of the complaints.
According to the new management strategy, the complaint is a gift. So, catch it because it will help you to strategize in the near future.
Neutrals will always remain neutrals. Try to engage promoters strategically and use them for your Brand Promotion.
You should listen to your detractors and solve their complaints otherwise they will keep on speaking negatively about you.
With the help of strategies of how to measure customer satisfaction given as above, you can understand what your customers’ needs, and scale up your business.