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Customer Loyalty Depends on the Word “WHY”

Customer Loyalty

Understand WHY Customers Remain Loyal to Your Company

Many people assume that customer loyalty and customer satisfaction is based on asking one very important question – What is the likelihood of you referring others to do business with us? This is commonly known as Net Promoter Score, or NPS.  On a scale of 1- 10, 10 being the highest likelihood, you delight in the folks that score a 9 or 10, pay more attention to the 6, 7, and 8 scorers, and count on the fact that anyone scoring 5 or less is already looking elsewhere for your product or service.

But only asking IF customers will refer to you misses, in my opinion, the truly critical component.

Now, asking customers IF they will refer to you is very important. But, I’d really like to take it a step further and ask customers WHY they would refer to you. This is how you find out what it is in your organization that you do really well that makes an impact on folks -OR – that nothing in your company really stands out from the rest of the pack. 

Consider this… if you were to ask a current customer why they would refer others to do business with you, or would continue to do business with you themselves, and they responded back with “Because the folks here really seem to go out of their way to help me. I like the fact that everyone is really friendly and knows what they are talking about.” 

If you had that response, you would know that your customer service and the customer experience is something that your company does really well and you should capitalize on that. Continue to make it a focus. Recognize and reward those that truly exemplify the customer service skills and deliver amazing customer experiences you want to be known for.

The significance in asking people WHY they would recommend your company to others is understanding what is MEMORABLE about your company and the way you work with customers.  It goes without saying, you want to be creating positive experiences that make customers feel good about their decision to do business iwth you.

When customers need to take a while or can’t really come up with a specific reason WHY they would refer their friends to you, you need to take a step back and face the harsh truth that your organization is pretty bland. You aren’t making enough of a positive impact in any one area that has impressed them enough to make them want to come back or resist the draw of your competitors.

Fortunately, it’s a simple fix. Create positive experiences throughout your company that will draw your customers in, engage them, become their ally,  and ultimately build and nurture long term business relationships. All it takes is focusing on the customer – their needs, their struggles, how you can help them, how they want to receive your help, and communication. In future posts, I’ll explain exactly how to do just that.

What are your thoughts on taking it a step further and asking WHY people would refer to you? Take a moment and comment below.

2 comments
Shep Hyken
Shep Hyken

I love the NPS concept and highly recommend it, but as this article points out, we should try to gather the “why” or reason behind the customer’s answer. It can be as easy as simply adding one question, making it a simple two question survey, and that question is just one word: Why? That said, I like another question, which is this: If you can think of one thing to make the experience you have with us even better, what would it be? This is an especially important question to pose to your happy customers (your promoters), because if a number of your happy customers who already think you are great are offering similar suggestions, you have an opportunity to improve on greatness.

Kristina Evey
Kristina Evey

Absolutely, Shep. Asking what would make it even better is perfect because the folks already doing business with you are in the best position to give suggestions for improvements. Keep the comments coming! Cheers!

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