Okay, so by now you know that I’m a big fan of measuring customer satisfaction. At Marathon, Cadillac Fairview and now at Eservus, collecting customer feedback was (and is) at the core of our service quality strategy. Conducting annual tenant surveys is great – property managers use the results of their surveys to respond to tenant issues and improve service delivery. But how do you collect feedback between those broad-based surveys? That’s where the Net Promoter Score comes in.
The Net Promoter Score, or NPS, is a simple way to measure customer satisfaction by asking one question: How likely would you recommend [Company] to your friends and colleagues?” (For more information on the methodology behind NPS, click here.) As it turns out, there’s a strong correlation between high NPS scores and profitability. One prominent real estate company to make use of the Net Promoter Score is Colliers, which, according to their website, is “the only major commercial real estate firm in Canada that uses the Net Promoter Score Program … to systematically measure client satisfaction.” Colliers uses the NPS to measure clients’ satisfaction with their dealings with Colliers employees, and employees with the highest scores are acknowledged on the company’s website.
My company, Eservus, has been using the NPS for about a year now, and we find it to be a much more effective metric than our old six-question survey. We can now compare our scores to those of other companies to see how we rate. We set an official company objective to have a Net Promoter Score that exceeded Amazon’s, which, at 70, has the highest NPS of all e-commerce companies. What’s Eservus Net Promoter Score you ask? Seventy-six!
So if you’re looking for a way to collect feedback from your tenants on an ongoing basis, take a look at the Net Promoter Score. Of course, focusing on other key metrics, such as occupancy and retention rates, will always be important. But knowing that your tenants would recommend you as a landlord … or not … can help guide your tenant service strategy and increase tenant retention, which, as we know, goes straight to the bottom line.