Question 1

Define and explain the NPS formula and how it applies to customer satisfaction.

Accepted Answer

Net Promoter Score (NPS) is a metric used to measure customer satisfaction and loyalty. It is based on the simple question, "On a scale of 0-10, how likely is it that you would recommend our company/product/service to a friend or colleague?"

The NPS formula is calculated by categorizing respondents into three groups based on their rating:
- Promoters (score 9-10): These are customers who are highly satisfied and loyal, and are likely to recommend the company to others.
- Passives (score 7-8): These customers are satisfied, but not necessarily loyal or enthusiastic. They may be easily swayed by competitors.
- Detractors (score 0-6): These customers are unhappy and unlikely to recommend the company. They may even discourage others from using the company's products or services.

To calculate the NPS, the percentage of detractors is subtracted from the percentage of promoters. The formula is: NPS = % Promoters - % Detractors.

The NPS can range from -100 to +100, with a higher score indicating higher customer satisfaction and loyalty. It provides businesses with a clear measure of how their customers perceive their company, and can be used to identify areas for improvement and track changes in customer sentiment over time.

Overall, the NPS formula provides a simple yet effective way to gauge customer satisfaction and loyalty, and it can be a valuable tool for businesses to improve their offerings and customer experience.

Question 2

Describe the three levels of commitment to feedback.

Accepted Answer

The three levels of commitment to feedback can be described as follows:

1. Receptive: At this level, individuals are open to receiving feedback and are willing to listen and consider the input given to them. They may not fully embrace the feedback, but they are at least willing to hear it and reflect on it.

2. Engaged: This level of commitment involves not only being receptive to feedback but also actively seeking it out. Individuals at this level recognize the value of feedback in their personal and professional growth and actively seek opportunities to gather input from others.

3. Action-oriented: At this highest level of commitment, individuals not only receive and seek out feedback, but they also take concrete steps to act on the feedback they receive. This may involve making changes to their behavior, seeking further clarification, or actively working to improve in areas identified through feedback.

Overall, these three levels of commitment to feedback demonstrate a progression from simply being open to receiving feedback to actively seeking it out and taking action based on the input received.

Question 3

The author argues that feedback can be seen as a form of

Accepted Answer

Feedback is often viewed as a form of coaching because it is aimed at helping individuals improve their performance or behavior by providing them with constructive criticism and guidance.

Question 4

Open communication occurs best when:

Accepted Answer

Open communication is most effective when individuals feel that their opinions are valued and believe that they will not be punished—or might even be rewarded—for expressing their thoughts and ideas. This creates an environment of trust and respect, encouraging more open and honest communication.

Question 5

The easiest feedback system is a customer feedback card.

Accepted Answer

Customer feedback cards are simple and straightforward to implement, making them one of the easiest methods for collecting feedback directly from customers.

Question 6

The time to gain insight from an unhappy customer is:

Accepted Answer

The best time to gain insight from an unhappy customer is at the time of the problem because their feedback is immediate and reflects their genuine experience and emotions.

Question 7

A business that is "reluctant compliant"will:

Accepted Answer

A business that is "reluctant compliant" will make a half-hearted effort at customer service, indicating they will do the minimum required for compliance without genuine enthusiasm or commitment.

Question 8

An active listener company will listen to complaints, but will do little to implement improvements.

Accepted Answer

An active listener company not only listens to complaints but also takes action to address and implement improvements based on the feedback received.

Question 9

Handling complaints from two to three dissatisfied people will save how many possible defections?

Accepted Answer

Handling complaints from two to three dissatisfied people will save 30-40 possible defections because each dissatisfied person has the potential to influence 10-20 other people.

Question 10

Customers whose complaints are heard and acted upon are more likely to continue being loyal to you than those who do not have a complaint of the first place-even if you cannot fully fix their complaint.

Accepted Answer

Addressing complaints shows customers they are valued and their feedback matters, which can enhance loyalty even if the issue isn't completely resolved.

Question 11

What percent of customers whose complaints are dealt with report a willingness to do business with a company again?

Accepted Answer

Studies have shown that when complaints are effectively resolved, 50-80% of customers are willing to do business with the company again.

Question 12

One reason that customer feedback cards are not effective is that customers only fill them out when they are bored while waiting for service.

Accepted Answer

Customer feedback cards can be ineffective for several reasons, including a bias towards extreme opinions (either very positive or very negative), lack of incentive for customers to fill them out, and not accurately representing the broader customer base, rather than just being filled out due to boredom.

Question 13

A quick response to a customer's problem should convey your:

Accepted Answer

A quick response shows that you are willing to address and resolve the customer's issue promptly.

Question 14

The real issue when working with customer solutions is:

Accepted Answer

The answer of The real issue when working with customer...

Question 15

If customers fear a debate every time they voice a concern they will:

Accepted Answer

The answer of If customers fear a debate every time...

Question 16

The three-step process for acting on complaints does NOT include:

Accepted Answer

The answer of The three-step process for acting on complaints...

Question 17

To run an effective focus group, you need to hire a professional with experience in handling groups of people and balancing the feedback from the participants.

Accepted Answer

The answer of To run an effective focus group, you...

Question 18

Which of the following strategies is NOT a great method of soliciting feedback?

Accepted Answer

All the options listed (Mystery shoppers, Customer surveys, Explorer groups) are legitimate and effective methods for soliciting feedback from customers or users. Each has its own unique approach and benefits in gathering insights.

Quiz 8: Get Customer Feedback