At Peer1 and Server Beach (SB) we use the Net Promoter Score (NPS) to measure our success in delivering best in class customer experiences. Net Promoter® is both a loyalty metric and a discipline for using customer feedback to fuel profitable growth in the business.
Interestingly at Peer1 and SB we publish our scores – this transparency is just another example of how we are so different, it’s just how we do business. You will find many hosting companies use NPS but they don’t want you to know their scores because they aren’t very good (some I know are consistently negative!) or they don’t show progress and improvement over time. Ask them; see if they will tell you……
Our aim with NPS is to give us a single measure of customer satisfaction, that when high enough drives organic growth. At the Beach last year 45% of the growth came from existing dedicated hosting customers ordering more servers, driven by an NPS of 49%, which is exactly what we want. The scores at managed hosting are also now fantastic, at 30%, but most encouraging is the fact that this is an increase of 76% on last time, a huge improvement in difficult times and indicative of the smashing work being done behind the scenes.
Good profits versus bad profits. You can manipulate your short term company results or deliver short term growth by screwing customers, but great service companies put resources into building, enhancing and delivering on the customer experience promises and deliver growth from repeat purchases and word or mouth referrals.
I am a huge fan of the NPS methodology. I know many in the customer satisfaction survey industry hate it – how can one question give you all you need. They are like the buggy whip manufactures at the dawn of the age of the car. I haven’t time for their whinging. However, in seeking a single metric everyone inside the company can simply understand and ever project can be measured against, the simplicity and ability to action win out for me, every time.