How Many People Would Recommend Your Company to a Friend?

In his article, The One Number You Need to Grow, Bain consultant Fred Reichheld identifies one essential question to ask customers:  “How likely is it that you would recommend this company to a friend or colleague?”  In Reichheld’s experience researching thousands of companies over the past ten years, the higher the percentage of people who answer extremely likely, the better your chances to increase sales in the years ahead. 

How much better?  In reviewing other research on customer satisfaction and its impact on the bottom line, improving customer satisfaction scores by just 10% can improve revenue growth by 3%.  That might not sound like much on the surface, but in a company with $100 million dollars in sales, a 3% increase equals an additional $3 million dollars in revenue. 

Interested in creating a higher percentage of people who enthusiastically recommend your company?  Here are a couple of tips from Blanchard consultants Kathy Cuff and Vicki Halsey on how to create a culture of service in your company:

  • Good service begins by showing your customers that you care.  Create a culture of service and align everyone in the organization towards a focus on the customer.
  • Get to know your customers. What are their likes and dislikes?  How do they prefer to be communicated with? 
  • Be responsive.  Demonstrate this by responding quickly to requests and service needs. 
  • Empower your people. This starts by turning the organizational pyramid upside-down.  In this model, the people closest to the customer come first.  Frontline supervisors, mid-level managers, and senior leaders all play support roles to the person directly serving the customer. 

By getting started in these four areas you can create a culture that gets a higher percentage of people recommending your company to their friends.  That, in turn, translates into extra revenue growth.  It’s a success formula where everyone wins.

Would like to learn more about the linkages between customer service satisfaction and the bottom line?  Download Blanchard’s new whitepaper on The High Cost of Doing Nothing.

4 thoughts on “How Many People Would Recommend Your Company to a Friend?

  1. I hear what you’re saying. It’s easy to talk about changing a culture, but this is something that takes a lot of time and a lot of work.
    I’m hearing you on the extra revenue and ROI, and I would agree with you. It’s definitely worth the time and work to change the culture, but it’s not something that happens quickly.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s