What metrics can you use to evaluate your supplier feedback program?

1 Response Rate

The response rate is the percentage of suppliers who complete your feedback survey or questionnaire. It indicates how engaged and willing your suppliers are to share their opinions and experiences with you. A high response rate means that your feedback program is relevant, easy, and timely for your suppliers. A low response rate means that your feedback program is not reaching your suppliers, or that they are not interested or motivated to participate. You can improve your response rate by sending reminders, offering incentives, simplifying your survey, and segmenting your suppliers.

2 Satisfaction Score

The satisfaction score is the average rating that your suppliers give to your overall relationship or specific aspects of your collaboration, such as communication, quality, payment, or support. It measures how happy and loyal your suppliers are with you as a customer. A high satisfaction score means that your suppliers are satisfied and likely to continue working with you. A low satisfaction score means that your suppliers are dissatisfied and likely to switch to another customer or complain about you. You can improve your satisfaction score by addressing your suppliers' pain points, providing feedback, and recognizing their achievements.

3 Net Promoter Score

The net promoter score (NPS) is the percentage of suppliers who would recommend you to other suppliers or potential customers, minus the percentage of suppliers who would not. It measures how loyal and enthusiastic your suppliers are about your brand and value proposition. A high NPS means that your suppliers are promoters who actively advocate for you and refer you to others. A low NPS means that your suppliers are detractors who criticize you and discourage others from working with you. You can improve your NPS by delivering on your promises, exceeding expectations, and creating a community of suppliers.

4 Feedback Quality

The feedback quality is the depth and relevance of the information that your suppliers provide in your feedback survey or questionnaire. It indicates how useful and actionable your feedback program is for your decision making and improvement. A high feedback quality means that your suppliers provide specific, honest, and constructive feedback that helps you identify strengths, weaknesses, opportunities, and threats. A low feedback quality means that your suppliers provide vague, biased, or irrelevant feedback that does not help you solve problems or achieve goals. You can improve your feedback quality by asking open-ended questions, encouraging honesty, and providing examples.

5 Feedback Utilization

The feedback utilization is the extent to which you use the feedback that you collect from your suppliers to make changes and improvements in your processes, policies, or products. It measures how responsive and committed you are to your supplier feedback program. A high feedback utilization means that you act on the feedback that you receive, communicate the changes that you make, and measure the impact that they have. A low feedback utilization means that you ignore the feedback that you receive, do not communicate the changes that you make, or do not measure the impact that they have. You can improve your feedback utilization by prioritizing feedback, creating action plans, and sharing results.

6 Feedback Return on Investment

The feedback return on investment (ROI) is the ratio of the benefits that you gain from your supplier feedback program to the costs that you incur to run it. It measures how profitable and worthwhile your supplier feedback program is for your business. A high feedback ROI means that your supplier feedback program generates more value than it consumes, such as increased sales, reduced costs, or improved quality. A low feedback ROI means that your supplier feedback program consumes more value than it generates, such as wasted time, money, or resources. You can improve your feedback ROI by optimizing your feedback program, aligning it with your business goals, and tracking your outcomes.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?