Franne McNeal explains why buyers care about customer satisfaction when evaluating a company. She recommends measuring it with Net Promoter Score (NPS), which shows how likely customers are to recommend the business. High NPS signals strong future performance and makes the company more attractive to acquirers.
Hi, I'm Franne McNeal, and there are 8 key drivers that drive the scalability of a company. The 7th one is customer satisfaction. Pretty obvious, right? So how satisfied your customers are, are going to be very important to your buyer because again, when a buyer buys a company, They're buying the future. So when you leave and run off into the sunset, they're going to want to know, how is this business going to perform when you are gone? The owner has to be able to drive this score up on customer satisfaction. You've really got to quantify empirically, quantitatively, how you measure customer satisfaction. Probably the most well-liked, well-respected way to do it is something called the Net Promoter Score. You can Google it later. Essentially, you're measuring and benchmarking your performance on the likelihood that your customers are going to recommend you. And the more that you have that data and the more that you have it, you, that, you know, like this is it, this is true. You've got the peace of mind that your customers are satisfied. And the more acquirers will also be able to see that your customers are satisfied, and then they're more likely to purchase from you.
