Word-of-mouth remains the most powerful way to gain new customers. It is not enough for consumers to enjoy their products. Only consumers who feel they have an above average relationship with a business are willing to recommend that business to others. Consider the popularity of Linux. Even though Linux is an open source operating system, its creators recognized the power of word-of-mouth marketing. Companies can measure a customer’s satisfaction with a transaction through the use of a net promoter score. Every business has a score, even if the owners don’t know it. The very idea of such a score represents a fundamental change in how business is conducted now.
Some businesses have a negative score. They’ve alienated customers, usually through a lack of communication. Failing to properly interact with customers not only means companies lose future business from one customer, but it also damages relationships with other customers.
Most companies have a neutral net promoter score. This means people are mostly satisfied with their experiences, but they aren’t impressed enough to become active promoters. Only the best companies have net promoter scores that are high enough to turn consumers into active promoters.
The Internet provides numerous opportunities for businesses to achieve this elite status. Companies that score highly with consumers seek out critiques and respond; they understand the beauty of tools such as online feedback forms and online surveys. The most effective companies use social media to establish and maintain relationships, a strategy that makes the company look customer friendly. They gather feedback through surveys to discover the issues that are affecting their sales. Even though people generally like being asked for their opinion, it’s a good idea to incentivize survey participation by offering a contest in connection with the survey. It’s far more cost effective to maintain a customer than to find a new one, and getting new customers with word-of-mouth advertising is cheaper than purchasing ads. Companies that build relationships will thrive.
