There are so many opinions about what companies should do to be most successful; these range from implementing the best sales practices to launching traditional marketing blasts. Wiping away unnecessary complexity and simplifying success can be one of the hardest things for a company to do. However, there is a simple way to gauge success in your organization. What if all it took was asking one simple question? Fred Reicheld, Net Promoter Score (NPS) founder, recently taught me how.
When I first heard the acronym “NPS,” I had no idea what it meant. Thanks to a few Google searches, I learned it stood for “Net Promoter Score” but I still did not know enough to understand the value it could provide to our business or our clients. Then I heard Fred Reichheld speak about his passion - customer loyalty. What I learned was that the way we view client feedback and satisfaction needs to change.
Why does customer loyalty matter? Let me count the ways:
- Loyalty leaders grow their businesses 260% more than their competitors. A happy customer means word-of-mouth referrals and recurring business.
- Loyal customers are the building blocks of company growth. These customers become brand ambassadors and co-branders; they buy additional items and provide valuable feedback on how to constantly improve your business.
- Loyal customers foster the intent to recommend. This is important because it aligns the head (logic) and the heart (emotion), which instills customer loyalty. If customers know they are receiving the best service or product possible and that your company knows, values and listens to them, you have a loyal customer for life.
So, how is customer loyalty earned? By applying the golden rule when dealing with customers- treat people the way you want to be treated. You can’t grow a profitable business without treating customers right so they come back and bring their friends.
So, next time you ask the question, “How likely are you to recommend my company to a friend or colleague?” (on a scale of 1-10), the ultimate goal is to achieve a 10 here and at each touch point with a customer. When the scores come in lower than a 10, the organization should then react immediately to determine why and how to improve the customer’s experience.
How does your organization measure success?
Featured Photo, Phoenix. StringCan Interactive. 2014.