A recent research project for a client opened our eyes to the impact that high-quality customer service has on growth. This client has used our ServiceConnect transactional survey process since 2007. We compared the service growth over a four-year period by individual customer account with the responses from each customer account to the Net Promoter question (willingness to refer).
I try to confine my comments on this blog. They typically focus on strategy, customer service, and closely related topics. I want to take a liberty to in this blog to use a current example of how an health insurance industry is taking actions that are breaking the trust, whatever little it had, with its customers.
Since 2005, we have provided a transactional survey process, ServiceConnect, to our clients. Most of the clients are Caterpillar dealers. One of the biggest challenges they have faced is the Passive customer (i.e. the customer who gives a 7 or 8 on the willingness to refer or Net Promoter Score question). Over the past year several dealers have made significant improvements in moving Passive customers to the Promoter category. I interviewed one client CEO about what they did and he had a simple response.