April 25, 2014
Measure Customer Loyalty (part 2)
Today's guest blogger is NAHB's Brace Ford bringing us the second part of her two-part blog post about Net Promoter Score. Brace is the Director of Membership Services for NAHB. She works with local and state HBA leadership to develop and implement member acquisition, retention and engagement strategies and is the contact person for HBA membership-oriented programs such as Touch, TouchPlus and NPS. She can be contacted at email@example.com.
A Free and Simple Way to Increase First-Year Member Retention
In the last article, I spoke about Net Promoter Score®, or NPS® as a tool many Fortune 500 companies are using to simply measure customer loyalty. Here at NAHB, the membership department is offering our version of NPS free to any HBA who registers for the 2014 spring and/or fall membership drives.
One of the biggest challenges local HBA’s face is member retention. Nationally, retention of members in their first year averages 48% and 54% for associates and builders respectively. Not great, especially when you consider the amount of work that went into acquiring the new member.
With the implementation of NPS, we can give you some insight as to what your new members are thinking, whether they are satisfied with their membership and whether they are at risk for non-renewal.
Here’s how it works. Once you’ve opted-in to NPS, you’ll upload your HBA’s logo and address (unless you are already a Touch user – we already have your information). Six weeks after a new member signs up, we will email the member a simple two-question survey customized with you HBA’s logo and contact information.
Question 1: “On a scale of zero to ten, how likely is it that you would recommend our (product, service, membership) to a friend or colleague?”
Question 2: “What is the primary reason for your score?”
As I mentioned in the previous installment, responders will be categorized in to three groups: Promoters, Passives and Detractors, based on the score they give to question 1.
From the scores your HBA receives, an overall Net Promoter Score is derived. This single number will give staff and volunteers a good read on how satisfied your newly recruited members are. Responses to the second question will give you direct feedback from your new members – what’s working for them and what isn’t.
Responder data will be sent directly to the HBA’s. Armed with this data, an HBA representative can follow-up with these new members and nip any problems in the bud, especially those problems that could lead to non-renewal. New members that are identified as promoters can, and should be contacted by HBA leadership for further engagement opportunities. New members identified as passives can be contacted to let them know about ways they can take advantage of their benefits and new member detractors should be called to find out if there is a specific problem and can it be rectified.
If you haven’t already, I encourage you to sign up for the 2014 membership drive here: nahb.org/2014DriveRegistration
Once you’ve signed up for the drive, you can sign up for NPS at nahb.org/NPSRegistration.
Using Net Promoter Score can identify the factors that matter most to members and can help your HBA create a plan of action to delight and successfully retain your members.
Net Promoter, Net Promoter Score and NPS are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.