Not necessarily. Making the assumption that people are buying from you because they’re happy with your service and brand puts you in a risky place. A few things might be showing up for you if you’re in this blind spot.
For example, you’re selling to the same customers. It’s likely that as long as you’re making sales, the perception is that’s enough and you’ve probably stopped investing in attracting new customers.
Your customer growth has also probably flattened. Even if your revenue is okay, you’re not getting new customers coming in. Selling to the same people time and again perpetuates the assumption that they must be pleased with your service and brand. But if they were really pleased, wouldn’t they run out and tell all their friends to buy from you?
You can most likely point these issues back to your customer management system, which is either not very good or non-existent. Are you tracking your sales? Do you know who’s buying? This kind of system is easily cast to the wayside in the throes of day-to-day operations.
It could be that you’re so focused on social media engagement you’ve started using that as a proxy for your expectations of future customer engagement. But this is the wrong metric. If you’re looking at the wrong metrics, especially around customer engagement, then you’ll be trapped in this blind spot for a long time.
When you focus on social media instead of real metrics, you’re collecting anecdotal information as opposed to statistical. Even customer surveys only provide anecdotal information. You may be asking your customers to review your products and service and leave a review on Google or Yelp, but again, these are not statistically proven metrics.
It’s possible you’re not asking the right questions when you do engage your customers. For example, you may not be effectively using the Net Promoter Score (NPS) survey. This is an industry-standard survey question that demonstrates future performance. The actual score is based on responses you receive after asking this one question: “On a scale of one to 10, what’s the likelihood that you would recommend us to a friend or colleague?”
The NPS is a statistically proven method of predicting future sales. By not using the NPS, you’re not giving yourself an accurate insight into how people feel about your product, service or brand: data that can determine whether you’re on the right track or not when it comes to future sales and growth.
Data & Statistics Matter
When I see business owners failing to use tools such as NPS, I automatically assume two things: they don’t know about it or just don’t see the value in taking time to focus on it. If this is you, then you’re keeping yourself from a clear understanding of industry-accepted customer satisfaction metrics.
You might perceive tools like NPS as overly simple in their approach because you may have been told that sending customers a lengthy survey, and collecting as much information as you can, is the best way to determine how they feel about your products and service.
Contrary to popular belief, however, you’re not developing a relationship with your customers when you send them long surveys. Creating long surveys or using fancy online tools only takes you away from developing a personal relationship with your customers.
Still, you create and use these surveys to find out how you’re doing and where you can improve, oblivious to or ignoring the fact that all you really need to ask is how likely your customers are to recommend your business to a friend.