Start by measuring and improving client satisfaction
When I was writing my recent article on 2018 client acquisition goals, I mentioned the importance of assessing client satisfaction before you push for more client referrals. Here’s a tactic you can use to benchmark the “health” of your client relationships so you can react to potential issues and improve loyalty over time.
On a scale of 0-10…
Have you ever received an email survey after a purchase or customer service interaction that included this question?
On a scale of 0-10, how likely would you be to recommend [company name] to a friend or colleague?
Underneath, you would choose the button under the corresponding number, from 0 (not at all likely) to 10 (extremely likely). This is often followed by the question “Why?” and a text box for details.
This concept, called Net Promoter Score®, or NPS®, was created by Fred Reichheld and Bain & Company. Your score is based on the percentage of responses falling within three categories:
- Promoters – score of 9-10. These are loyal clients who are most likely to refer your firm to others.
- Passives – score of 7-8. These clients are satisfied, but not necessarily loyal to your firm.
- Detractors – score of 0-6. These clients are least satisfied, and more likely to spread negative feedback.
The execution is pretty simple. Email the NPS question (and the “Why?” follow-up question) to your clients using SurveyMonkey or another inexpensive email survey tool. You can do this at regular intervals (as in once per year), or at predetermined stages during the client lifecycle. Mentioning in the introduction that there are only two questions should help improve the response rate.
If your survey tool doesn’t automatically calculate results, subtract the percentage of detractors from the percentage of promoters. For example, if you have 70% promoters, 20% passives, and 10% detractors, your score is 60. A score of 50 or above is generally considered excellent.
It’s just a number
Your initial score is the benchmark of customer loyalty at one point in time – a data point. Don’t take it personally, as you will always have promoters and detractors. What’s most important is how you react to the constructive feedback and improve your score over time.
Responses to the “Why?” question may help you target a few areas for improvement. Spend equal time focusing on expanding the activities that drive promoters, which you’ll find are often different from the activities that turn around detractors.
More promoters = more referrals
As you are able to measure and improve client satisfaction, you can feel more confident reminding clients of the importance of their referrals to your business. There will be more loyal clients saying more nice things about you – the best (and most inexpensive) type of marketing available. Want help implementing NPS or a client satisfaction survey? Please contact us.
Note: NPS and Net Promoter Score are registered trademarks of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld.