Over the last 30-days, I’ve been exposed to at least three Net Promoter Score surveys: Apple, Jet Blue and Marriott. Each differed in length, structure and the questions asked, but one commonality remained in each – the central NPS question – “How likely are you to recommend my product or service to a friend of family member?” From business services to consumer goods to healthcare to travel, Net Promoter Score is being in industries across the board.
What I found particularly interesting in reviewing these surveys (and numerous case studies) is that companies are setting strategic and pivotal benchmarks to gauge the customer experience throughout the entire experience.
For example, Apple inquired if I was greeted upon entering the store, if there were ample staff members to assist me with questions while selecting my purchase and if when checking out the return policy was explained to me. Basically these are particular moments in the transaction when I might be significantly impressed or severely disappointed. Either way, Apple wants to know, as this information and, more importantly, what is done with it, can make or break a businesses’ reputation.
For example, if I walk into Apple and am satisfied with the greeting I receive (we’ll give it a 7 on the NPS scale, which = neutral), I am extremely happy with the attention I get when trying to select the correct DVI-VGA cable (we’ll give it a 9, which = promoter), but I am extremely unhappy with rude attitude I receive from the cashier who takes my payment (2 on NPS scale, which = detractor). And the ultimate question: How likely am I to recommend the store to a friend or family member? I give an 8, which categorizes me as a neutral customer or fence sitter and is not calculated into the overall NPS score equation. Apple now has the ability to deduce why my answer to the ultimate question is only an 8. They can then analyze the various points of contact and my experience in each allowing them to see where their shortcomings and strong areas of service reside.
Based on this example, it’s easy to see how this methodology could be directly carried over to a real estate. From individual transactions to daily operational procedures… A broker might be interested in learning why the company is receiving so many inquiries and leads, yet actually closing so few transactions. An agent team might want to understand why a buyer who seemed thrilled with the overall experience and planned on purchasing a vacation home in six months never came back. NPS questions can (and should) be structured to address these very issues, i.e. Was there a breakdown in communication? Was thorough follow-up conducted effectively during the transaction? Obviously there are an endless number of questions that could potentially be asked, but the key in the early phases of launching an NPS survey is identifying key areas in which barriers to higher customer satisfaction might occur.
In identifying these focal points in a transaction, there are questions that must be asked and answered – obviously unique to the business model and its past track record. More importantly, it’s important to step outside of the inside, such as having an outside party evaluate these components. This can be evidenced by a recent study that stated 80% of CEO’s think their brand offers a unique experience…only 8% of their customers agree (Bain & Company, 2007).
Some food for thought: Through the eyes of your customers, what aspects of your business might not be up to par and may be resulting in the creation of individuals neutral about your company or worse, detractors? Are there specific procedures that occur in your business that differentiate your company from the competition? Answers to these questions can assist in creating a customized survey to identify the strengths and weaknesses of your current operation.
In the next NPS post we will discuss ways real estate companies have used NPS to enhance the overall transaction experience and, in turn, have enhanced relationships with clients.