Two quick measures often used to track whether a business or organisation is performing are overall satisfaction and the Net Promoter Score, in addition to profitability.
If customer perceptions on both measures are positive, they are useful metrics to report.
Lower than desired levels of either can indicate a need to work more on products, services or customer purchase or use outlets.
There is a correlation between satisfaction and the NPS, as a recent study noted.
In this study, the overall customer satisfaction level was a promising 84%.
But only 56% of those who rated the organisation at the NPS levels 1 to 5 were satisfied. In contrast, 83% of those who rated it at the NPS levels 6 to 8 were satisfied, as were 95% of those who rated it at the 9 to 10 NPS levels.
These variable levels of satisfaction also mirrored actual recommendation. When asked, only a quarter of all had recommended the organisation to anyone in the last year. And most recommendations were of the generic “they are good people” type. Few recommended individual products or services.
If recommendations can help grow your business, then the data suggests that you need to ask your customers – are you satisfied with us/our products/our services? If you are, tell people! Recommend us to your family, to your work colleagues or to your friends. And help your customers – tell them what to say, as the message will vary if they are recommending to a 15 year old, to a senior or to anyone in-between.
We can help you to identify the messages that will work with your different customer groups. Call Philip Derham (0414 543 765) or email him (derhamp@derhamresearch.com.au) to find out how.