Net Promoter Score® – How you can use NPS to promote your business
The true value of a business grows when their customers are genuinely happy. A customer that is extremely satisfied with your product or service will promote your business to their friends, partners, associates etc. This word-of-mouth promotion can have a cascading effect if you are able to maintain great quality consistently. It can in-turn have a huge effect on growing your business organically.
At the same time, there is no way to know if your customers are happy or not, unless the feedback of customers is tracked effectively. You have to know which of your customers are happy and which are not. Of the happy customers, you need to know what made them happy and how many of them will actually recommend your product or service. This data can then be used to maximize the number of happy customers who will eventually recommend you. This is where Net Promoter Score® does its magic.
What is Net Promoter Score?
The Net Promoter Score® is the most effective metric to measure customer loyalty. This score measures the likeliness of your customers to recommend your business over time.
On a scale of 0 (Not at all likely) to 10 (Extremely likely), we ask this question – “How likely are you to recommend us to your friends?”. The net score of the business is calculated based on the response to this question.
Users that respond with 0 – 6 are called “Detractors”. These are the users who will not only promote your business, but might do negative impact. Feedback from these users have to be taken very seriously and corrective measures have to be put in place to improve user satisfaction. You can also follow-up on these users with a promotional offer or send customized messages to improve their satisfaction level and bring them back to your business.
Users who respond with 7 – 8 are labelled “Passives”. These are customers who will do no harm and at the same time will not promote the business as well. They are neutral in their stance.
Users who respond with 9 – 10 are the real “Promoters” of your business. These are the customers who are really happy with your product / service and will recommend your business to their friends and family. Their feedback has to be studied to understand what is making them happy and you can promote it to increase the number of happy customers.
The Net Promoter Score® is calculated by subtracting the percentage of customers who are Detractors from the percentage of customers who are Promoters.
NPS is a measure of your customer satisfaction. This survey can be repeated over couple of months to measure the improvement in customer satisfaction index. Also, following the NPS question with a comment box will give you more insights on what exactly is right or wrong from your customer’s point of view.
Keeping track of NPS is very vital for businesses to understand its customers and improve product or service quality. In the long run, nothing helps your business more than listening to the voice of your customer and taking strategic decisions accordingly.
How it can be used to promote your business
The concept of Net Promoter Score® was introduced in 2003. At that time, it was used by large companies, primarily Fortune 1000 companies to measure and validate customer feedback. Now there are several tools that have integrated NPS, so its quite easy to get started and run NPS surveys even for small and medium companies.
To start with, use an NPS supported survey tool to create a custom NPS survey based on your industry. Share the web-based survey link with your customers or collect responses at your premises through the tab / mobile device. When the responses start coming in, you’ll see the number of detractors, passives and promoters along with any other comments entered by your customers.
You can use this actionable data to understand what part of your business is doing well and what part is not. Decisions can be taken based on this data to focus on areas that need improvement. This will help in improving customer satisfaction as well as in promoting your business organically.
As a business decision maker, nothing will be more satisfying to you than to see your NPS meter go from red to orange and then to green. If it’s consistently on the green side, that’s a great sign that your business will take care of itself for the times to come.
If you would like to try out NPS at your company, check out FeedbacQ. NPS can be integrated into any survey or as a stand alone survey. Data can be collected through the FeedbacQ app on tabs, mobile or through the easily shareable web-based URL.