Customer loyalty is of strategic importance. It generates customers with a high “lifetime value”. A loyal customer is more likely to recommend you to others – impacting on business growth and reputation!
A widely used metric to measure customer loyalty is the Net Promoter Score (NPS). This is very easily determined. We ask customers how likely they are to recommend ‘supplier X’ using a 0-10 scale. Scores of 9 and 10 are promoters; scores of 7 or 8 are neutral (passives), and scores of 6 or less are detractors. The Net Promoter Score is calculated by subtracting the proportion of those giving a score of 6 or less from those giving a score of 9 or 10. This provides a great benchmark by which to judge the performance of your company. The average B2B company has an NPS of +24 which is far from ideal. Best in class companies have an NPS of 50 to 80. Find out more in our infographic below.
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