CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
Net Promoter has been effectively used in all sorts of businesses, including small start-up companies. In fact, we’re so convinced that the Net Promoter system works, we use it ourselves (we welcome you to take our survey to let us know how likely you are to recommend re:member group). The main premise of Net Promoter stems from the Golden Rule: treat others the way you want to be treated.
Yesterday’s Blog Post focused on asking customers one question: “How likely is it that you would recommend this company to a friend or colleague?” This is one of the main premises of understanding Net Promoters, in that you must develop a systematic way to categorize customers into promoters, passives and detractors.
However, to get the true picture of how your customers want to be treated, we insist you ask an additional question: “Why?”
In addition to asking the "Likely to Recommend" question, a good Net Promoter survey will always ask "Why?" The free-form responses to this question often provide the most useful insights for companies. Asking the “Why?” question allows customers to give authentic answers, and unites organization leaders to close the loop with customers. This is essential to begin treating customers the way they want to be treated.
Leaders must listen to what customers have to say and fix the problems that lead to unhappiness or anger. That’s “closing the loop.” Only then can we begin to create experiences that lead to delighted customers. By knowing the reason why a customer would (or would not) recommend your organization begins a conversation, and opens the door to earning the “enthusiastic loyalty of your customers by creating economically rational ways to delight them.”1
Are you treating your customers the way they want to be treated? Lanham Napier, the CEO of Rackspace (and named one of the top 100 most influential executives in 2010) says, "I believe that there are very few core truths that remain constant through time—but one of these is the notion that we must strive to turn customers into enthusiastic advocates who say great things about us to friends and colleagues. This is the path to greatness."(1) The only way to do this is to treat our customers the way they want to be treated. And the only way to know this is to ask them.
(1)Reichheld, Fred, and Rob Markey. The Ultimate Question 2.0. Boston, MA: Bain & Company, 2011.