Organizations are becoming smarter. More tools are available than ever before to measure your performance and the experience for your customers and employees. But why do organizations often look to their competition to see if they are on par with the market average? Why not look inside your own four walls? Let me explain…
In 2003, Fred Reichheld, partner at Bain & Company, created a new way to measure how well an organization treated the people whose lives it affected. This metric is known as the Net Promoter Score (NPS). NPS is derived from a quick, one question survey: “How likely is it that you would recommend Company X (or Product X) to a friend or colleague?” This loyalty metric has quickly become the methodology for organizations to track how their employees and/or customers represent the organization to their own personal networks. Are those employees referring their friends and raving about the amazing workplace environment? This drives employee retention and brings other high quality candidates to your interviews. What are those customers saying that’s detracting from your word-of-mouth business? Perhaps they’re not loyal to the brand and only purchased from you because of your price at that time of the sale.
Back to my point: Why not look inside your own four walls while leveraging NPS? Organizations need a standardized metric that they can rely on. Something they can use to “drive operational excellence” (which is tied for #3 on the list of CEO’s Top Challenges as researched by The Conference Board Challenge 2014 and DDI World). NPS can be that standard metric. NPS has quickly revolutionized the research world and become the de-facto standard. It’s for this reason that organizations need to include this question on each survey that is administered, whether it be each product line, service-offering or employee survey (climate and engagement). This enables proper internal benchmarking and improvements to be made in a more constructive manner.
Instead of looking outside to the competition, focus on what’s truly going to move the needle inside of your business and act on those key drivers. When properly executed, this is where organizations will notice significant lift and feel improvement all the way from the front lines to the ivory tower, from the R&D to the Sales Bookings. Executives can now follow the business without an analyst, and they can immediately collaborate on action-items based on those common trends.
What’s the best way to increase response rates? By making your survey as short and concise as possible. By leveraging NPS as your internal benchmark, you allow your customers and employees the ability to provide quality feedback in one quick and simple question while driving actionable insights. Don’t worry about what you can’t control (external NPS scores). Instead, focus on what’s right in front of you and how you can use that data to improve.
Find out how Inquisium by Cvent’s feedback solutions will help catalyze your NPS strategy while alerting you in real-time about those negative situations. Click here to learn more and sign up for a demo.