Is a single-question customer metric enough?

18 Feb 2018

The single-question customer metric has always been a popular tool to measure customer loyalty, via ad-hoc or longitudinal studies. Indeed, many organisations use the Net Promoter Score (NPS), following the claim that a single question is all that is needed to predict a company’s financial performance, customer loyalty and growth.

It is argued that by asking “How likely is it that you would recommend company X to a friend or colleague?”, an organisation is able to assess overall customer loyalty based on the customer’s intention to refer others. Although the question can give you an indication of loyalty during the customer journey it doesn’t actually give you any explanation of the root course or the cause of a low score. It only gives you a snippet of information even if you analysed the results against demographic details. For a brand/business, this is simply not enough.

[bctt tweet=”The success of customer loyalty comes down to a number of aspects but it is mainly fuelled by managers’ recognition of the benefits that a loyal customer base brings.” username=”Jake_pryszlak”]

In a nutshell, loyal customers mean they are more likely to:

All of these desired behaviours from the ‘loyal customer’ are expected to translate into consistent cash flows and increased revenue for the business. However, this requires formal customer experience programs that monitor performance and guide improvement efforts. Traditionalists would argue that it could be obtained through customer surveys that track measures such as satisfaction, repurchase intention and word-of-mouth intention.

However, I would like to recommend splitting customer loyalty into 3 areas:

The below image shows you the overall snapshot of customer loyalty and how I personally think it could be. Having said that, I am not trying to say organisations have their customer loyalty programmes wrong, but many need ongoing refinements to keep up with consumer demands and the methods they communicate with others.
There are, however, 3 main customer loyalty QUICK WINS that organisations who are in the Premier League of customer loyalty adopt:

[bctt tweet=”How is customer loyalty embedded in your organisation?” username=”Jake_pryszlak”]

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