Generating new customers is much more difficult than retaining current customers. Businesses can stay afloat in a time of recession by leaning on those current customers - the downfall: they must do everything in their power to keep them as customers. One of the most effective ways businesses have successfully had good customer retention programs is by surveying customers.
By using the net promoter score (NPS) question type, a company can survey customers using a 0-10 point scale with 0 indicating the extreme negative and 10 extreme positive. There are three categories: promoters, passives and detractors. Promoters are those who rate a 9 or 10. Passives are those who rate a 7 or 8. Detractors are those who rate the organization a 6 and below. The total NPS score is determined by subtracting percent of detractors from percent of promoters- with 50 and above considered a good score. The NPS survey question asked is: How likely is it that you would recommend this product to a friend or colleague?
With promoters, there are two main types: high-profit and low-profit.
High-profit promoters are those individuals who buy the most, most loyal, and essentially make up the company’s revenue stream. But low- profit promoters are loyal customers who are restricted from purchasing as much as they like (typically due to budget). In the end, high-promoters are essential to company’s profit because if you believe the 80-20 rule (80% of your profits come from 20% of your customers), then you certainly want to survey to find out who those high-promoters are in order to keep them happy.
Like with promoters, there are the high-profit and low-profit detractors.
Customers who are high-profit detractors are still very important, because they are still high dollar clients. Companies must give them a lot of attention as these are the people who your competition will want to steal. Low- profit detractors are those you cannot please within reason. However, while you may lose these as customers, it’s important to maintain professional relationships as well a good company image. You don't want to give your detractors any additional reasons to say anything negative to other potential customers.
Something to keep in mind: dissatisfied customers will eventually tell 9 other people about their problem with satisfied customers will tell 5-6 others about their positive experience. Having customers that are willing to promote you are the biggest indication of a high customer satisfaction.
By using the net promoter score (NPS) question type, a company can survey customers using a 0-10 point scale with 0 indicating the extreme negative and 10 extreme positive. There are three categories: promoters, passives and detractors. Promoters are those who rate a 9 or 10. Passives are those who rate a 7 or 8. Detractors are those who rate the organization a 6 and below. The total NPS score is determined by subtracting percent of detractors from percent of promoters- with 50 and above considered a good score. The NPS survey question asked is: How likely is it that you would recommend this product to a friend or colleague?
With promoters, there are two main types: high-profit and low-profit.
High-profit promoters are those individuals who buy the most, most loyal, and essentially make up the company’s revenue stream. But low- profit promoters are loyal customers who are restricted from purchasing as much as they like (typically due to budget). In the end, high-promoters are essential to company’s profit because if you believe the 80-20 rule (80% of your profits come from 20% of your customers), then you certainly want to survey to find out who those high-promoters are in order to keep them happy.
Like with promoters, there are the high-profit and low-profit detractors.
Customers who are high-profit detractors are still very important, because they are still high dollar clients. Companies must give them a lot of attention as these are the people who your competition will want to steal. Low- profit detractors are those you cannot please within reason. However, while you may lose these as customers, it’s important to maintain professional relationships as well a good company image. You don't want to give your detractors any additional reasons to say anything negative to other potential customers.
Something to keep in mind: dissatisfied customers will eventually tell 9 other people about their problem with satisfied customers will tell 5-6 others about their positive experience. Having customers that are willing to promote you are the biggest indication of a high customer satisfaction.
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