Measuring Customer Satisfaction - Net Promoter Score

One method of measuring customer satisfaction is the Net Promoter Score.

D. Brown Management Profile Picture
Share

The Net Promoter Score / System (NPS) is a simple but rigorous survey methodology. 

Scoreboard: On a scale of 0-10 would you recommend ABC Construction for your next project? What is the primary reason for your answer?

Regardless of how you measure it, customer satisfaction is critical for a contractor and must be top-of-mind for everyone when looking at their scoreboard.  

NPS starts with a couple of simple questions:

  1. On a scale of 0-10, would you recommend ABC Construction for your next project? 
     
  2. What is the primary reason for your answer?

The important part is the follow-up on the reasons cited in the second question for continuous improvement.

Turning this methodology into a regular system is what can really set contractors apart. We have seen some contractors who survey their customers each month throughout a project and are continuously improving each month. This ensures recurring work with satisfied customers.




Communicating as a Leader
Leadership is about the ability to influence and align people. And that is largely about effective communication and consistent actions.
Lean Principle - Value Stream
A contractor’s value stream is every step required to take raw materials and information then deliver a completed project to the waiting hands of a customer. Deep understanding of this value stream is the foundation for major productivity improvements.
Valuation Math - Multiple of Earnings
In a valuation, you will often hear the term multiple of earnings. This is usually calculated based on some average of the last 3-5 years earnings and weighted toward the more current years.