Question: What’s the most effective way and the most efficient way of measuring customer satisfaction?
Answer from Marty Cagan of the Silicon Valley Product Group: My favorite way of measuring customer satisfaction is the Net Promoter Score (NPS). This metric is described in detail in the excellent book “The Ultimate Question: Driving Good Profits and True Growth” by Fred Reichheld, and on the associated web site www.netpromoter.com.
Essentially, you ask your customers how likely they would be to recommend your product, on a scale of 0-10. Those that rate 9 or 10 are considered “promoters” (they’re out there telling their friends how much they love your product, and are actively evangelizing for you); those that rate 7-8 are lukewarm or neutral; and those that rate 0-6, the “detractors,” are not likely to recommend your product, and may even be actively warning their friends about your product. If you take the percentage of promoters and subtract the percentage of detractors, you get the NPS. This essentially tells you if you have more people cheering for you or against you.
I also like this metric as the basis for measuring the effectiveness of product managers. You can read about that notion in the article Measuring Product Managers.