Fred Reichheld The Ultimate Question

Over the years a lot of research has been done on how you can measure customer satisfaction.

The idea is sound.

Happy customers should lead to a successful business.

However the research didn’t find the conclusive link between quality and customer service that the advocates wanted… or if it did, the measurements required were very complicated.

That’s why the concept in The Ultimate Question is so exciting.

The Ultimate Question To Ask Customers

The Ultimate Question was found by customer loyalty guru Frederick Reichheld and comes down to this simple idea.

“How likely is it that you would recommend the company to a friend of colleague?”

On a scale of 0 to 10.

10 means extremely likely to recommend.

5 means neutral

0 means not at all likely.

Research by Reichheld found one particular combination of scores is a great indicator of repeat purchases by the customer and referrals to others.

The Satisfaction Scores May Shock You

First, what average rating would you be happy with from your customers?

Frederick Reichheld found the following was happening.

Those who scored themselves as 9 or 10 were Promoters and were consistent advocates for the business.

Those who scored 7 or 8 were satisfied at the time of the original service… their expectations had been met and even exceeded… but they are Passive in recommending the business to others.

Logically, they accept you did a good job but there is no emotional connection.

This explains why your customers and clients may be happy enough on the surface but don’t give you referrals.

The last category is those who scored from 0 to 6. Reichheld found that these people were Detractors.

The sort of person who when asked would say “I tried them but they didn’t seem much good to me. I’d look elsewhere if I was going to buy again.”

People in this category probably didn’t complain to you… but they have a corrosive impact on your success.

The Passives – that’s those who rated you with 7s and 8s can be ignored. They are neither for or against you.

The Net Promoters Score

The net promoters score which Reichheld predicts your future success is Promoters minus Detractors.

This is a simple, clear measure which you can use to hold employees accountable for the service provided in your business.

It can be criticised because it is simple when customer loyalty and word of mouth recommendation is a complicated subject.

I think it is ideal for any small business who don’t have the time and budget to go into complex customer surveys.

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