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About customer loyalty...seeking a simple measurement

by Rick Baker
On Jan 16, 2013

Are you on the lookout for simple, reliable business tools? [i.e., Are you Seeking Simple business solutions?]

Are you interested in understanding your customers' perceptions of your company, product or service?

If you answer yes to these 2 questions, here's one simple & straightforward answer...

***

About customer loyalty, there is one ultimate question. It allows you to quantify your level of customer loyalty.

On a scale of 0-10...

"How likely is it that you would recommend this company, product or service to a friend or colleague?"

Tally the answers under the following 3 classes:

          9-10 means Promoter

          7-8 means Passive [and at some risk to competition]

          0-6 means Detractor [and that's a real problem]

Then your customer loyalty score is calculated as follows:

Promoters - Detractors = NPS

NPS: your 'Net Promoter Score'...the higher the better...and, an upward trend-line is a good thing.

 

NPS: a terrific example of Seeking Simple.

 

Footnote

Source of the NPS customer-loyalty question: Fred Riechheld, 'The Ultimate Question', (2003)

Tags:

Marketing | Questions?: The Art of Asking Good Questions | Seeking Simple!

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