Last Updated on January 27, 2013
Category: All, Business, Charities, Customer Insight, Social Housing

Recent research indicated that if you were to replace all your customer feedback questionnaires with a single question, it should be: “How likely would you be to recommend your landlord to friends or family?”

An article in the Harvard Business Review describes this as: “The one number you need to grow.” It says that abstract concepts such as how well people think you perform or how well you are thought of by others, are less meaningful to a survey respondent than what may be the ultimate test of their loyalty: whether they would recommend you to a friend. When customers act as referees they do more than indicate that they are happy with the service you provide, they put their own reputation on the line.

To calculate your ‘Net Promoter Score’, classify as ‘Promoters’ all those who respond ‘very likely’ to this question; ignore anyone who responds ‘fairly likely’ (they are simply ‘passively satisfied’ and are unlikely to recommend you); and classify all the others who respond ‘neither’, ‘fairly unlikely’ or ‘very unlikely’ as ‘Detractors’. Then take the percentage of ‘Detractors’ away from the percentage of ‘Promoters’ and this is your ‘Net Promoter Score (NPS)’.

The research reported in the Harvard Business Review states that world class companies have an NPS greater than 75%. Arena has looked at data for the: ‘How likely would you be to recommend…’ question from the selection of landlords that have included it in their STAR Surveys. One achieved an NPD of +76% (Wow!) but the others are in the range from -10% to +44%. This analysis highlights differences in performance far more clearly than their ‘Overall satisfaction’ scores would indicate.

For more information about our survey design and delivery please check out our survey services page.