Steve Baxter, senior vice president of worldwide sales for Satmetrix, says net promoter scores can clue in a company to what others think of the business. He gave his presentation to Auto Glass Week™ attendees on Thursday in Tampa, Fla.
“We all know it costs a lot more money to get a new customer than keep an existing customer,” he said.
“Eight years I’ve been doing this net promoter thing and I love it. It works. It levels the playing field. … It’s designed to give you some perspective from the outside world and what others think about your business,” Baxter explained.
“Easy measurements of loyalty can sometimes be misleading,” he added. “True loyalty is would you make the same decision in the presence of another choice? … Ninety percent of companies think they give superior customer service. Some do not.”
When a company starts working on driving up loyalty, the benefits can be tremendous.
“The people who are good at loyalty grow two and a half times faster than the average,” Baxter said.
Four key loyalty behaviors include repurchase, buying additional lines, making referrals and giving constructive feedback, Baxter pointed out.
“Getting out there and finding out through the lense of the customer what they think about you can drive growth,” he said. “… Customer loyalty starts with employees. Are you paying them right? When they show up are they cheerleaders for your business?”
He touched on what goes into the net promoter score.
“On a scale of zero to 10 how likely are you to refer a friend,” Baxter asks? “It’s questions like these that decide the net promoter score. If you 50 percent promoters (referring your business to others) but 50 percent are detractors than your score is zero.
“It takes seven positive statements to undo one negative,” he said. “… A good score, equaling best in class is about 70. This is world-class.”
Auto Glass Week continues through tomorrow. Stay tuned to www.glassBYTEs.com™ for the latest from the event.