Customer Loyalty Research
Customer Loyalty Research can begin by simply obtaining a Net Promoter Score, or NPS (a rating is sought from 0 to 10 based on the single question “How likely is it that you would recommend (a company/product/service) to a friend or colleague?”). NPS is then calculated as the percent of people who rate 9 or 10 minus the percent who rate 0 to 6. A net positive number is good and can range from 1 to 100. This question can be asked on your website, via an email, or on the phone by your customer service department.
It should be obvious that any such rating may be based on totally different factors of importance to a customer, e.g. a car buyer might be loyal because of a great salesperson/excellent service, a lower price, safety features, or the type of entertainment system offered. Likewise, a customer might turn to an alternate company due to a low rating on one or more of the same factors. Clearly, a change in even one key factor by either you or a competitor could impact loyalty.
So it is imperative to probe deeper. Using Customer Loyalty Research, it is easy to branch out from the single NPS question and uncover more about what separates your most loyal from least loyal customers. For example, ask customers to rank a list of product features to determine if there are any gaps, i.e. ones responsible for a low rating. Or elicit which specific aspects of customer service contributed to a low rating. By focusing on areas in need of improvement, it will be easier to develop plans to focus on and positively impact those who are less loyal.