In this episode, David and Eric wrap up their coverage of Value Builder (https://valuebuilder.com/for-business-owners/) drivers with Customer Satisfaction.
Do your customers promote your business on your behalf? A lot of business owners assume their customers are satisfied. We discuss some interesting dynamics that often make that not the case.
Created by Fred Reichheld and a team at Bain & Company, The Net Promoter Score (https://www.bain.com/insights/introducing-the-net-promoter-system-loyalty-insights/) is one of the most reliable customer assessments out there. It is simple so it is much more likely to be completed honestly, and gives actionable insight into customer satisfaction and likelihood of future growth of a company. Furthermore, it quantifies an often qualitative hunch into a score that can be bench-marked and acted upon.
We also discuss the importance of turning your customers into raving fans of your business as they will promote your business without you asking them to. This is the best kind of advertising you can get.
We tie this into business valuation as we discuss that more satisfied customers are a signal to a buyer of lower future cash flow risk and greater future cash flow growth. This increases the amount a buyer will pay.
You can also do a Net Promoter score assessment for your employees (eNPS) ( https://www.qualtrics.com/blog/employee-net-promoter-score-enps-good-measure-engagement/ ) It accurately measures how engaged your employees are and gives incredible insight into how you can improve it. Are people just showing up for work? Or are engaged fans who are promoting your company every chance they get?
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