You’ve heard of NPS, and now you think what good it can do to you. Let’s see the benefits of Net Promoter Score and how you can make the most out of it for your business.
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, isn’t it!
What are the benefits of Net Promoter Score
The benefits are massive, but what are they? What do you get out of measuring customer advocacy this way? Let us tell you five salient benefits of Net Promoter Score sequentially.
One of the key benefits of the net promoter score 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 allows you 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.
The NPS system goes past measuring customer satisfaction but 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 more fabulous 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, reevaluate your score to see if your strategies are getting results. This allows you to gauge whether what you are doing is increasing loyalty, and if it isn’t, then you can make changes to drive this sentiment going forward.
Here are the ways you’re looking for to close the loop with NPS.
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!
Now, while it is essential to focus on how well your business is doing in creating promoters, it is even more critical to focus on 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.
Learn more ways of reducing customer churn here!
All in all, we’re after sustainable business growth! The actionable feedback which NPS provides is precisely what sets us up to achieve this. Promoters are the driving force. Here’s why:
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.
Why is Net Promoter Score (NPS) important?
NPS gauges customer satisfaction and their likelihood to recommend you to others. It helps you identify your key business strengths and weaknesses to further improve customer loyalty.
Is Net Promoter Score or NPS useful?
The NPS is determined through a quick, 2 question -survey from your customers. It measures customer satisfaction, which in turn helps you make adequate managerial decisions to improve customer experience resulting in increased customer retention and loyalty.
Why is NPS bad?
NPS is not bad and it is not flawed. There’s a reason why tech giants like Apple, Netflix and Amazon rely on this metric so much! NPS calculates the likelihood of others recommending your brand and it’s the best way to gauge customer loyalty and further build loyal customers.
What is a good NPS score?
The NPS is benchmarked against industry standards. Generally, any score above 0 is good, above 50 is excellent and above 70 is considered world class!
Is it good to invest in NPS?
It certainly is! Calculating NPS is inexpensive as compared to other metric tools. With NPS, you get to measure the likelihood of new and repeat business which makes forecasting easier. Procurement, placement of human resources, identification and rectification of problem areas are just a few of the things that you can accomplish with NPS as your guiding star.