Measuring Customer Loyalty using Dynamics CRM

I recently received an invitation from my mobile phone company to participate in a survey by responding to five simple questions by text message.

The first question:

How likely are you to recommend Company X to your friends and colleagues? Reply with a number between 1 and 10 where 10 is ‘Extremely Likely’

This question is used as part of the tool called Net Promoter Score which is a customer loyalty metric developed by Bain Company consultant Fred Reichheld. Customers who choose a score of 9 or 10 are labeled promoters. Those who choose a score of 1 to 6 are categorized detractors, while those who select 7 or 8 are deemed passively satisfied. The net promoter score (NPS) measures the difference between the percentages of customers who are promoters and detractors. For example, if 60% of your customers are promoters and 20% are detractors, your net promoter score is 40. An NPS that is positive (i.e., higher than zero) is considered to be good, and an NPS of +50 is considered excellent. Reichheld’s research suggests that changes in a company’s net promoter score correlate with changes in its revenues i.e. increasing NPS is a leading indicator of positive revenue growth. In other words, it can be used to predict positive revenue growth.

There are several survey tools that work with Dynamics CRM including Mojo Surveys and ClickDimensions. Once you have your survey responses collected, you can present this information in a graphical format for easy access by your sales, marketing and service teams.

I used the following steps to accomplish this.

1. Create two custom entities
1. Customer Loyalty Survey: This entity contains the following fields.
1. Name
2. Survey Date
3. Total Responses (integer)
4. Total Promoters (integer)
5. Total Detractors (integer)
6. Net Promoter Score (decimal, may be positive or negative, between -100 and 100)
2. Customer Loyalty Survey Response: This entity contains the following fields.
1. Name
2. Customer Loyalty Survey (lookup to the above entity)
3. Response (integer between 1 and 10)
4. Comments (if any)

2. Create a Workflow to summarize survey results
1. Trigger: When Customer Loyalty Survey Response is created
2. Step: Calculate and update Total Responses, Total Promoters, Total Detractors and Net Promoter Score
   Note: Net Promoter Score = (Total Promoters – Total Detractors) / Total Responses

3. Create a chart to display Net Promoter Score by Survey

After you import survey responses into Customer Loyalty Survey Response entity, the results including NPS are automatically calculated by the workflow created above. The results are then available for viewing as view and chart similar to a screenshot below.

NPS can be incorporated as a Key Performance Indicator (KPI) in a dashboard or a balanced scorecard for your sales, marketing and service teams.