Light up a big cigar, and celebrate that your latest survey got 30% response! Well done – you followed all the best practice guidelines: Net Promoter® question, comment question, kept the survey short, sent reminders. It’s even in line with NPS® Benchmarks.
Feel proud. For just a moment.
Because you are suffering from Fewbris. The sin of pride in low customer engagement.
And just like hubris has affected leaders since the ancient greeks, your pride is about to take a hit. Enter your nemesis: Monetized Net Promoter.
Reach for the top. Not for response.
It’s a common myth that a high response is a sign of a healthy NPS Program. At CustomerGauge, when we send out emails, we like to see a 25% response from B2C customers, and 35% or more from B2B.
But that’s limited to the number of available contacts. Let me introduce Reach – the measure of how many possible contacts in your clients that could influence buying decision. As a rule of thumb, most B2B organizations should be reaching for around three contacts per customer. For large accounts, you need more: we say nine contacts for every $1 million in sales.
This is a CRM challenge – and NPS Leader companies often bonus account managers on keeping the database up to date (you can expect around 20% of your contacts to churn each year).
Consider yourself an NPS Leader if your Reach is 56% (The average is 50%).
But in any case, you want to make sure that you have maximum reach in your top account segment. Use the 80/20 rule to ensure you get reach and response here. Now you are starting to do Montized Net Promoter: Overlaying the value of clients with your responses.
You need the best Coverage
Coverage is Reach x Response. With 50% reach, and 30% response you will hit 15% Coverage. Less impressive than that great response number, eh?
But it's at the high end of the range. In our recent NPS benchmarks survey, we found some companies are down around 6%.
Oh and that’s assuming one survey a year. NPS Leaders are surveying between 2 to 4 times per annum.
And we find that NPS Leaders are greedy for numbers throughout the year – they are using responses to do course corrections, customer close loop, and working out the values of Promoters and Detractors. Showing the dollar value of one point of NPS – that’s what we mean by Monetized Net Promoter.
Your Fewbris will be your downfall.
Heed our warning – if you are not providing representative data of your customer base, you will not be taken seriously in the organization.
We’ve seen this before. In CustomerGauge, we help our clients strive to get Coverage of more than 20%, and more like 50% in top account segments. We do this by connecting Net promoter systems to CRM databases, and to ERP systems to get the account values.
If you can’t do this, you are running a Heritage Net Promoter system. Luckily, it’s possible to get in front of Fewbris. Take action now, and avoid being ancient history!