Customer feedback could be your secret weapon — but how?
Feedback from your customers could be one of the most valuable sources of business intelligence for your business — but most operations haven’t quite figured out how to harness this data in a way that works for them.
It’s HARD to get customers to consistently leave feedback. Most attempts to generate feedback from paper comment cards and online surveys fall WAY short. How many times have you tried to get meaningful feedback from your customers but couldn’t get them over the hump of completing your survey? For this reason, most feedback is either really positive (“always love coming in here”) or really negative (“why don’t you guys serve sandwiches!?”)… and rarely received with enough context to be actionable.
When are you going to fill this out….Today, tomorrow, or never?
Furthermore, when you do manage to get feedback… what does it mean? It’s hard to compare customer feedback over time when it’s all based on written comments.
The Power of Quantitative Feedback
That’s where Net Promoter Score comes in – by surveying your customers easily and often, you can create a complete picture out of feedback data, alerting you to operational issues, or bringing light to things that make your operation great. (Side note: Learn more about Net Promoter Score in this webinar).
All it takes is asking one simple question: “On a scale from 0-10, how likely are you to recommend this business to a friend?” People who answer 9-10 are considered “Promoters”, and are incredibly valuable to your business. They spend more, come back more frequently, and generate more referrals. People who answer between 8-7 are “Neutral”, and are lukewarm about your business. Guests who respond between 0-6 are “Detractors”, and are actively unhappy with their most recent experience. Your overall Net Promoter Score is calculated by subtracting your proportion of Detractors from your overall proportion of Promoters.
What Net Promoter Score Says
How satisfied are your customers? Where is your operation thriving — or suffering? Net Promoter Score feedback from your customers – especially when tied to transaction data — becomes an incredibly powerful way to collect actionable intel on your businesses’ performance.
When tracked over time, NPS can be used to look at location-level performance, set goals for managers, and monitor the effects of operational changes.
Beyond being useful at face value, this quantitative feedback from customers has amazing predictive power: brands with declining Net Promoter Scores see declining revenue follow shortly after. For this reason, it’s critical for brands to keep a pulse on customer satisfaction and sentiment in a way that’s easy to track, numerical, and clear.
Controversy around Net Promoter Score
It’s been said that NPS isn’t multi-dimensional enough to truly encapsulate the nuances of customer satisfaction. But scholars of NPS argue that too much complexity actually detracts not only from a customer’s willingness to answer a survey, but also from a business’ ability to interpret that data. Often, asking too many questions is a red herring — brands suffer from “analysis paralysis” and fail to use that data to drive business decisions. By consolidating feedback into one “ultimate question” that gauges satisfaction, brands have all the info they need track and improve their operations.
However you choose to use it, the data generated by Net Promoter Score is incredibly valuable to all businesses and should be a staple of your data arsenal. Get more information in our webinar about NPS for your business here: Feedback and NPS Webinar