Our super tips on why you cannot afford to not be calculating your Net Promoter Score!
In 2003 Bain & Company established the Net Promoter Score to help companies measure and evaluate customer loyalty. All it takes is a one question survey based on ‘how likely are you to recommend to a friend or colleague’ and now any organisation can effectively monitor the impact of their customer experience strategies. Great hey?
The benefits are massive, but what are they? What do you get out of measuring customer advocacy this way? Let us tell you.
1. Increase Customer Satisfaction
One of the key benefits of the NPS is that you see instantly how satisfied customers are with the service you provide. Most good companies want all their customers to be happy – of course – and NPS gives you the opportunity to measure this effectively! When you notice that the ball has been dropped, you can immediately intervene and ensure steps are taken to address the issue – before it lingers.
2. Evaluate and Increase Customer Loyalty
The NPS system goes past measuring customer satisfaction but actually determining how many of these customers are loyal to your brand. Satisfaction is nothing if they are not coming back and your NPS is the best way to identify true customer loyalty. Indeed, there is no greater display of loyalty than one who is prepared to share their experience with you to their closest networks!
You can measure your initial NPS then, at a later date, revaluate your score to see if your strategies are getting results. This allows you to measure whether what you are doing is increasing loyalty and if it isn’t then you can make changes to drive this sentiment going forward.
3. Create More Advocates
One thing that goes hand-in-hand with customer loyalty is customer advocates – those who are actively recommending you to friends, family and colleagues. Word of mouth is such a powerful marketing tool which seems to go under the radar in the heavy-spend digital marketing world of today. Luckily, your NPS will give you a clear idea of which of your customers are most likely to recommend you and therefore who you can ask to do so for you!
Major Key: Asking for a recommendation at the time of a positive experience with your brand is imperative. You may well have provided an excellent experience to a client, but asking for feedback a year later may not lead to the recommendation you are after…
4. Reduce Customer Churn
Now, whilst it is important to focus on how well your business is doing in creating promoters, even more critical to focus on is our level of customer churn. Promoters are understandably much less likely to churn but knowing your NPS means you can invest more into creating an unforgettable customer experience which encourages passives and detractors to move into the green…!
Those in amber and red are likely to leave and go elsewhere! Worse, they tell others of their bad experience. Those you keep in the green become the super loyal ambassadors we have been speaking about.
All in all, we’re after sustainable business growth! The actionable feedback which NPS provides is exactly what sets us up to achieve this. Promoters are the driving force. Here’s why:
Promoters spend more (and are less price sensitive)
They’re more likely to try new product offerings
They encourage others to buy from you
They churn less
Promoters ultimately have a higher lifetime value
This is why NPS is so beneficial. Increasing the number of promoters in your business opens doors for massive growth potential. Through simple to use customer feedback tools like GroHawk, working out your NPS and using it to achieve positive growth has never been easier…