A lot of organizations pat themselves on the back when their percent of satisfied customers is consistently in the high 90s. In contrast, a lot of high-performing organizations ignore customer satisfaction scores because the scores don’t reveal what needs to be improved or how loyal these satisfied customers are.

Instead, high-performing organizations track either the “top box” trend (customers who give them a “5″ on a 5-point scale) or their net promoter score, which segments customers in three categories (promoters, passives, and detractors) based on their responses to a “likely to recommend” question. The number of promoters minus the number of detractors divided by the total number of surveys produces the net promoter score.

A higher net promoter score or “top box” score means more loyal customers. Why is that important?

According to a Strativity study of nearly 2,000 consumers in the U.S. and Canada earlier this year, companies that deliver exceptional customer experiences have significantly lower customer attrition, the ability to charge higher prices than their competitors, and the ability to capture a higher percentage of their customers’ wallets.

The following graph from Strativity’s report on the study illustrates the value of customer loyalty:

Strativity Graph

Here’s another compelling argument: 40% of loyal customers said they were willing to pay 10% or more to continue buying from companies that delivered great experiences.

Those delivering poor experiences? Most customers said they would only keep doing business with these companies if they offered a discount of 5% or more.

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