Do You Know How You Rate?

If the 2016 Presidential Election has taught us anything, it is that press is press.  Good or bad, the presidential candidates have learned that getting people talking can sometimes be more important than what they are saying.

Not true in your service oriented business.

In your business, WHAT is being said is everything.  About five years ago, Nissen Staffing Continuum partnered with a firm out of Portland, Oregon to conduct satisfaction surveys based on the Net Promotor Score (NPS) philosophy.  Like you, we didn’t know a lot about the NPS method and had to do a little research. As we go into our 6th survey in the next few months, we thought it might be helpful to share some information about the NPS methodology and why it might work well for your business.

NPS has some specific benefits:

  • IT’S SIMPLE: Most NPS driven surveys ask only 3 questions that drive the NPS score.  Some surveys will ask a few yes or no type questions to give the company additional feedback, but the first three questions drive the NPS score, and only require a 2-3 minute (or less) effort on the part of the responder.
  • IT’S TECHNOLOGY-DRIVEN: Since the questions are limited and answers specific, it allows for fast collection & analysis of data.
  • PREVENTS BAD SERVICE: Since NPS feedback can be almost immediate, it produces a ripple effect for response.  Rather than waiting to respond to service concerns, your staff can respond immediately.
  • GIVES YOU THE OPPORTUNITY TO BENCHMARK: If done within a specific industry, it is easy to compare your own results to that of your competitors.
  • IDENTIFIES TRENDS: When done multiple times, it is easy Identify trends and gain valuable feedback, identifying areas of needed improvement and learning where you excel.
  • IT’S CREDIBLE: NPS scores are very objective, even more so when conducted by a 3rd Party Administrator.

What does an NPS survey look like?  A NPS survey asks 3 NPS questions:  the first is on a 1-10 Scale, and the other two are open ended questions.  Ours looks like something like this:

  • On a scale of 1-10, with 1 being least likely and 10 being most likely, how likely are you to recommend Nissen Staffing Continuum to a friend? (Rate 1-10)
  • What is the primary reason for that rating? (Open Ended)
  • What is one thing we can do to improve our service? (Open Ended)

Our survey also asks a few direct questions about your service experience with us, in an effort to give our staff more specific feedback.  However, the first three questions are the most crucial.

But what do the ratings mean?  In short, an NPS score looks at Promoters, Detractors, and “Neutral” respondents.  It all but ignores any rating that is 7-8, and focuses on those rating a business 6 and under (detractors) and those rating a business a 9 or 10 (promoters). The idea is that promoters are out in the market place talking your business up.  They are the ones who would send you referrals, who talk positively about your business over lunch and who would immediately respond with your company name when someone asked them for a recommendation.  On the other hand, those that rate you a 6 or under, are detractors.  They are not recommending your business, they may be somewhat dissatisfied, and they are not a “cheerleader” for your business….in fact they are quite the opposite.  Those in between MATTER, but only in the sense that their goal is to move you to become a promoter.  They know that, in general, your business is doing a decent job, but at the same time they are not “wow’ed”.  The NPS score is determined by taking your total percent of promoters and subtracting out the total percent of detractors.

Once you know your NPS, you can easily compare yourself to other organizations known for World Class service (like Amazon or Google) and see how you rank.  If you use a 3rd party service that surveys within your industry, you can even compare yourself to your competitors.

Even more helpful are the answers to the open ended questions, and the immediate feedback that a short survey like this gives.  You can immediately respond to concerns and deal with detractors.  As we will discuss in a future article, often your reaction to a problem is more memorable to a customer than the problem itself.

When you are on the receiving end of a survey like this, it is helpful to know how the survey is being measured.  Normally, when we give a company an 8 on a 10 point scale, we are feeling like we rated them pretty high.  But remember, if you are someone that would promote the business, you should rate them a 9 or 10.  On the other hand, if you are dissatisfied, rating them a 7 puts you into the “neutral zone, “ so if you are truly dissatisfied and would never recommend them, you should rate them a 6 or lower.

Net Promotor methodology works best when its format is followed.  The survey should be short, the questions should be clear and the open ended feedback should be used to make immediate improvements.

An award-winning staffing expert in Southeastern Wisconsin in manufacturing, clerical, professional and light industrial placements, Nissen Staffing Continuum is proud of our commitment to providing human capital solutions to our clients, while assisting our associates in meeting their career objectives and delivering staffing services where we can create and grow value. As your strategic partner, we’ll help you take your staffing initiatives to the next level, whether it’s onsite programs, direct hire placement, temp-to-hire programs or temporary staffing. Our recruiters are supported by a full-time sourcing department dedicated to finding great employees for our clients. For more information about how we can help you find great employees, contact us today and allow us to help you with your HR needs so you can focus on your company’s success!

 

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