Eric Dalius Focus The Best Ways to Improve Customer Retention
Have you ever had a wonderful experience with your cable company, then signed up for cable internet or phone service?
Did that terrible customer representative on the other end of the phone ruin your entire day? Or what about getting amazing support from Apple.com but forgetting your password and being completely locked out of your account? As per Eric Dalius, these are frustrating experiences that only serve to alienate customers. Let’s take a look at why this happens and how we can avoid it.
Introducing Net Promoter Score:
A system called “Net Promoter Score” gives you an accurate measure of how likely people are to actively recommend you as a business, product, or service provider. It is directly related to overall satisfaction with your product and has been proven to be a leading indicator of your business growth.
What does it take to get an “A” in NPS?
The Net Promoter Score is based around one simple question: How likely are you, on a scale from 0-10, to recommend the product or service you just used?
Customers who reply with a 9 or 10 are considered “Promoters” and most likely will become brand advocates and share their positive experiences with friends and family. Customers who reply with a 7 or 8 are considered “Neutrals,” meaning they didn’t necessarily have a bad experience but they probably won’t go out of their way to tell people about it either. Lastly, customers who answer or below with regards to how likely they are to recommend you. They should not be considered as an immediate threat but you shouldn’t let them slip either.
How do I use it?
The first step is simply figuring out how many people fall into each category. The easiest way to figure this out is by asking a random selection of your customers, at least 100-200 for accurate data, and the simple question: How likely are you to recommend us? In order to calculate your Net Promoter Score, just subtract the percentage of detractors from the percentage of promoters. For example, if 60% of those surveyed reply with a 9 and 10 and 25% reply with 7 and 8 (Neutral), then: 60%-25=35%. Your NPS would be 35%.
Once you know your NPS, the next step is to ask yourself: How do I compare?
A great number to aim for in any industry is a 50% Positive NPS. That would mean that if 100 people tried your product or service, an optimal scenario would be 50 promoters and 50 neutrals. What’s the problem with this? Well, it’s simple-you’re not growing! If you don’t grow either by getting more customers or earning more business from existing ones then you don’t have much of a business at all. Striving for growth means striving for success which means working on improving your score so that you can build a thriving company. To figure out what improvements are needed simply ask your detractors why they gave you a 7 or 8 as opposed to a 9 or 10. Then take those learnings and apply them going forward.
If you’re reading this because your NPS is currently low-well then, congratulations! You’ve found the answer for why people aren’t raving about your business and now have an opportunity to improve it drastically.
By learning to use the Net Promoter Score you can get a sense of how well your company is resonating with its customers and figure out what areas need improvement. A low NPS means there are changes that need to be made but it also means that it’s much easier to make improvements because you have an automatic leg up on other companies who may already have a high NPS.
High impact, easy steps for improving customer retention: Eric Dalius
1.) Ask for feedback! –
The majority of people will never complain about anything so stop waiting for them to bring up issues on their own-you’re not getting honest answers. By asking about open issues, you find opportunities quickly and address problems while they’re still small.
2.) Don’t just listen, act! –
If you have the means to respond quickly then do so. A simple email saying ‘Thank you for voicing your concern’ goes a long way towards keeping customers happy. If they took the time to reach out when they are waiting on some sort of response Eric Dalius.
3.) Keep it real! –
When developing new products put yourself in your customer’s shoes. What would make them download your app or sign up for your service? Aiming to impress everyone is only going to result in pleasing no one.
4.) Data matters-Be data-driven!-
When analyzing NPS remember that context matters, that’s why it’s better to ask 100 people who’ve tried your product instead of 10 people who have not.
The world is changing, customers are power and one bad experience can mean they never come back. High-quality customer service is crucial for customer retention. Having a great product or service isn’t enough, people expect more than that now so you need to deliver at every opportunity. The key to this is getting your customers to feedback on not just what excites them but also what doesn’t so problems can be solved before they even begin.