Do the Math
A simple equation can help boost your sales.
Take the percentage of your customers who would recommend your company to a friend, then subtract the percentage who would not. The result is your net promoter score. In The Ultimate Question (Harvard Business School Press, $24.95), Fred Reichheld says this number is vital for businesses, and he shows how to calculate it--and raise it.
U.S. companies' average net promoter score falls short of 10 percent, Reichheld says. Some companies score much higher, however. To calculate yours, ask customers "How likely is it you would recommend this company to a friend?" soon after each sale. Have them rate you on a zero-to-10 scale. Consider nines and 10s promoters, and anyone answering below five a detractor. Then try different approaches to raising your score until you find what works.
4th of July Subscription Sale - Unlock this subscriber exclusive article and more for 20% off today.
Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.
Get 20% off an annual subscription today. Just use code SAVE20 at checkout.
Entrepreneur Editors' Picks
Tory Burch Built a Brand Around Empowering Women. Now Her Foundation Is Furthering Her Mission: 'How Do We as a Company Have a Positive Impact on Humanity?'
This Founder Had to Play College Basketball in Men's Shorts and Shoes, So She Launched an Athletic Clothing Company Named After the Now 50-Year-Old Title IX Act
Is Beyoncé's 'Break My Soul' the Theme Song of the Great Resignation?
You're Probably Falling for All of Amazon Prime Day's Psychological Sales Tactics. A Marketing Professor Reveals Them — and How You Can Actually Get the Best Deal.
Comedian Paul Virzi: 'If You're Not Authentic, You Have Nothing'
Struggling to Come Up With Creative Ideas? Try Doing This.
Picking a Winning Emerging Brand Is How You Get Rich in Franchising. Here's How to Spot One.