Here’s The Ultimate Question(s) To Ask To Improve Your Business

In my last post, the question was posed, “Do you see the value in surveying your customers?”

If you have taken the leap of faith and believe there is value in surveying your customers, I will provide you with a very simple method to survey your customers using the book, The Ultimate Question, by Fred Reichheld as a guide.  Two promises before we begin; first what I will share will be simple to implement.  Secondly, if you implement surveys as outlined, you business will improve.  It’s that simple!

The underlying idea behind The Ultimate Question is that loyalty is the key to profitable growth. Loyal customers will refer your business . .  . right?  Well, let’s find out.

Here’s the first question you should ask your customers . . . .

How likely is it that you would recommend our company to a friend or a colleague?

The answer to this question produces what Reichheld says is the Net Promoter Score.  Net Promoter Score (NPS) claims that every company’s customers can be divided into three camps; promoters, passives and detractors.  The measurement of this question is based upon a 1-10 scale with those answering nine or ten are promoters and those answering one or two are detractors.  In the most simplest sense, what every company should focus on is determining who are their biggest promoters and biggest detractors and try to leverage the economic value of each of these groups to the fullest.

A companies Net Promoter Score is simply the number of promoters minus the number of detractors; P – D = NPS.

In the promoters camp, happy customers mean higher retention rates, higher margins, increased purchases, increased word of mouth advertising, etc.  These are your raving fans; the very people that can help you build your business by referring your business to family, friends and neighbors.

In the detractors corner, these folks account for most of the negative word of mouth, complain more often, spend less and are not loyal to your business.  These folks can suck the life right out of you.  We have all experienced this type; obviously a business owner doesn’t want detractors.  But, we want to know why they are unhappy, so the second Ultimate Question a business owner should ask those people who scored the first question as a one, two or three should be . . .

In an effort to continuously improve the products (services) we provide to you, if you rated, question #1 with a response of one, two, or three, please share with us what we can do to make your experience with our company excellent so that in the future you may consider recommending us to others.

With the addition of the second question, we not only know our overall Net Promoter Score, but also concrete methods to improve our business.

And isn’t that the Ultimate reason why we should survey our customers in the first place?

To your success,

Joe

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