Customer Satisfaction

2 tools you can use to measure your customer satisfaction are the NPS Score and the 40% Rule. 

The 40% Rule

The 40% Rule is invented by Sean Ellis, known as “the Father of Growth Hacking”. He states that the most indicative question which you can ask your customers, to measure customer satisfaction is the following: 

“How would you feel if you could no longer use our product?”

He gave respondents four choices:

  • Very disappointed
  • Somewhat disappointed
  • Not disappointed (it really isn’t that useful)
  • N/A (I no longer use the product)

If you find that >40% of your customers say that they would be “very disappointed” without your product, there is a great chance you can build a sustainable, scalable customer acquisition growth on this product.

Respondents should have at least one of the following qualifications:

  • Experienced the core product or the service
  • Experienced the product or the service at least twice.
  • Experienced the product or the service in the last two weeks.

NPS Score

The NPS Score gives a great indication of customer satisfaction as well. To measure your NPS you should ask your customers “how likely they are to recommend your product or service to a friend or colleague”.

Respondents can pick a numerical score between 0 (not at all likely) and 10 (extremely likely).  

The responses can be categorized into these three groups:

  • Detractors: customers who answer the question with 0-6. They are unhappy customers who are unlikely to buy from you again, and who may even discourage others from buying from you.
  • Passives: customers who answer the question with 7 or 8. These customers are satisfied with your service, but not happy enough to promote it to others. 
  • Promoters: customers who answer the question with 9 or 10. They are typically loyal and enthusiastic customers, and they are your best advocates.

Afterwards you can calculate your NPS score, by subtracting the percentage of Detractors from the percentage of Promoters. For example, if 20% of respondents are Detractors, 35% are Passives and 45% are Promoters, your NPS score would be 45 – 20 = 25. 

A ‘good NPS’ will depend on the industry and country a business is in. But in general, if the score is positive, your product or service has more promoters than critics, so it’s likely that it satisfies the customer’s needs. Furthermore, Bain & Co. suggests that anything above 20 is “favourable”, above 50 is “excellent”, and above 80 is “world class”.

Video Customer Satisfaction

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