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Tuesday, April 12, 2005

Net Promoter

Some of the best work I have seen on customer satisfaction comes in the form of measuring how likely a customer is to "recommend" you to others.

This "promoter" score can be future refined by taking the difference between high promoters and very low promoters to get a "net" score. Example: on a ten point scale of likely to recommend, ten being highest. Take the 8, 9 and 10 scores and total these. Then take the 1,2,3, and 4 scores and total these. Subtract the low from the high and you will have a net score of customers you can most likely influence.

The benefit of using this net score is as a forward looking metric of how the future will go for your business. ( Some of the best work on the subject has been done by Bain. )

Net promoter scores that are trending upward signal more profitable growth. Those trending down send other less popular messages.

Try this approach with your business and see what happens!

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