Net Promoter Score (NPS) is a metric used to measure customer loyalty and brand advocacy. A Net Promoter Score Survey is based on a simple question that asks how likely you are to recommend the service to those you know, on an 11-point scale ranging from 0 to 10. The concept was developed by Reichheld in a 2003 Harvard Business Review article, and he claimed the answer was indicative of a company’s customer base, their loyalty, and the success of operations. He also calculates that a mere 5% increase in customer retention rates could result in a 25% to 95% increase in profits.
According to your response, your chosen businesses will gauge how much you appreciate their products and services, and categorize you according to:
Those who score your business a 9 and above. They are the most loyal and satisfied with the service and products. They are also most likely to recommend and spread the word about your brand.
Those who score your business a 7 and above. They are neither completely dissatisfied nor even completely satisfied. Their likelihood to recommend and spread the word of your brand is dependent on their experience.
Those who score your business a 6 and below. They are the most unhappy with the service and products. They are also the least likely to recommend and spread the word about your brand.
To calculate NPS, you subtract the percentage of promoters from the percentage of detractors. The score can range from -100 to 100. Using this simple calculation, you can measure, monitor, and manage your NPS levels. Software designed to measure this can make this task even more streamlined, saving additional operational costs.
What do Net Promoter Scores and queue management solutions have in common? The former is a measure of how much your customer appreciates your service standards. While the latter is a means by which to improve NPS, customer care standards. and general customer satisfaction and experience.
Some queue management solutions, like enterprise reporting enterprise solutions and feedback kiosks both measure and register customer satisfaction. Customers enter their response to the NPS survey on these kiosks and the queue management software analyzes and measures the Net Promoter Score.
According to research, 89% of customers began doing business with competitors following an unsatisfactory service experience, and 19% of customers cut off the ties completely. This is indicative of the sheer importance of customer satisfaction to business profitability.
NPS supports a clearer understanding of how customers view not only your services and products but your whole brand too! It is essential to working on improving the awareness of your business and its reputation in the industry. It also helps you to diversify your offerings, making customers seek you out for their selective needs.
The importance of Net Promoter Score for your business is dictated by your industry, your customer base, whether you are digitally onboarding or not, etc. But there are some universal benefits, advantages, and necessities for NPS.
Deploying NPS surveys is simple, as customers can fill them out in a variety of ways. They can use an on-premises kiosk surveys, desk device, or their own digital device, via text message, email, and mobile application. The questions too are simple, straightforward, and quick to answer even in a hurry.
This metric is accessible to any kind of client, regardless of their language, region, industry or degree of digital onboarding. Customers will spend minimum amounts of time filling out the survey, and so with such a limited time commitment, they are more likely to fill it out. More customers will fill it out and you will collect more responses than by traditional methods. And your business will be managed by more accurate data-driven analysis.
Based on your customer’s response, the metric categorizes them into three groups. These groupings help you direct and focus your efforts on those who bring the most value to your business. For example, knowing that customer X is a promoter, when they are being served, you will take care to offer them personalized services, cross- and up-selling them products and services.
In this way, you will have both shown and had them experience what loyalty can reap, as well as marketing and advertising opportunities.
Customers like to be shown how much their business is appreciated. And in response, they will be more loyal and supportive. Asking for feedback via the NPS survey is a sure way to show how much you appreciate their opinions and initiative. This will also facilitate the opening of an active channel of communication.
Adding an incentive or rewards like added loyalty points or a freebie will increase the number of responses and the quality of those submitted. They will see it as a token of thanks and appreciation.
The very measure of customer loyalty is the biggest and best means by which to continue growing customer support and improving services. When customers answer how likely they would be to recommend your services, they will be asked a follow-up question on why they chose to answer this way. The response to that is invaluable information for any and all businesses.
With this response, you can benchmark your performance against that of your competitors, your industry and your own past and future projected self! You identify areas that need improvement and act on and implement the feedback you receive to continue proving to customers that you care about their business.
Namely Customer Lifetime Value (CLV). This is a measure of the total profit a customer will help you earn in their lifetime. By measuring Net Promoter Scores and categorizing your customers, you know which groups to target and concentrate efforts on.
And soon enough, you will manage to satisfy all customers by customizing your offerings to convince them to continue trusting your products and services. Therefore your CLV will rise as your NPS and customer satisfaction levels rise.
To make the most of Net Promoter Scores and all that they can offer to your business, you must be aware of the following: