NPS
“On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?”
You’ve probably been asked this before.
This single question can be a huge player in getting to the “moment of truth” behind your customers’ opinions of you.
What is Net Promoter Score and How Can It Benefit My Business?
The Net Promoter Score* (NPS) is a simple index that measures a customer’s willingness to recommend a company’s products or services to others.
Created by Fred Reicheld and introduced in his 2003 Harvard Business Review article “The One Number You Need to Grow”, the metric is used to determine a customer’s overall satisfaction with and loyalty to a brand or product.
NPS is determined by a single question: “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?”
Based on their rating within the 0 – 10 scale, a customer can be put into one of 3 categories.
Detractors, Passives and Promoters.
- Customers who score you a 9 or 10 are your promoters. Therefore these are your best advocates – they will be repeat customers and will tell others about your business.
- Those who rate you a 7 or 8 are considered passives. They are on their way to becoming loyal customers, but are still susceptible to being swayed by your competition. Do not ignore passives.
- Scores of 0-6 are your detractors. There is a lot of potential to turn detractors into advocates by learning more about these customers’ needs and addressing their complaints.
The “would you recommend” question can be followed by an optional open-ended question asking for a quick explanation of the rating.
This can provide valuable insights on your business and since this is also user generated content it can be integral to your content and review marketing strategy. Read more on reputation management and reputation marketing.
Why Use The Net Promoter System?
The beauty of the Net Promoter system is its simplicity.
This one simple question, framed around willingness to recommend to somebody else gets a bit closer to the truth, faster.
Further it serves as a more powerful gauge than something like “How satisfied are you?”
In fact, the “would you recommend” question is up to 2.7 times as effective as a “customer satisfaction” question (https://www.genroe.com/)
Why Find Your Advocates?
Advocates spend more and shop more often.
According to fortune.com, promoters often spend 10-15% more and besides that they were 4 times more likely to remain loyal to the company.
How Can You Use NPS to Turn Critics into Advocates?
After identifying where your customers land, the aim, of course, is to turn them all into 9’s or 10’s. Subsequently there are many actionable insights that come from this score.
Hence the real value of NPS comes from how you use the qualitative and quantitative data to recognize trends and drive business improvements.
Following up, also referred to as “closing the loop” is a vital step to driving meaningful engagement and positive relationships with your customers.
Hence closing the loop will look different for each of your three groups:
Promoters
- Show appreciation for their positive feedback with a simple thank you note, swag, exclusive promotion, or helpful content.
- Let them help you get the word out.
- Find out what makes them tick, and try to apply this to your passives and detractors.
Passives
- Let them know that you take their feedback seriously with a customized follow-up form.
- To passives, you’re still just a commodity and a price-point. Therefore, try to convince them otherwise by focusing on what makes your service or product stand out.
Detractors
- Ask for more info to learn what problems detractors are having with your brand.
- Use NPS data to coach customer service reps or anyone in your company who deals directly with customers.
- Implement changes based on customer feedback.
Creating Customer Delight
Businesses today need to be proactive and NPS surveys are one way to listen to your customers. Most importantly they need to capture customer feedback across the customer journey via every possible touch point.
It’s time to move on from reputation fire fighting to reputation and review marketing.
Tellofy provides an end to end platform with NPS surveys for review collection, engagement and insights. Also its in multi mode ( text, audio, video) and across multiple channels.
Coming Soon – Use Promoters to Help Sway Detractors
Did you receive a complaint about a long wait time or an employee with not enough training? Therefore for low scores, the Tellofy customer engagement and insights platform system will send the detractors positive reviews from other customers about their specific issue or complaint.
Consequently,, seeing the positive can help to temper the customer’s dissatisfaction or see another perspective.
Finally we welcome your comments, suggestions or criticism on this article. Please share your thoughts via the tellofy feedback system or please feel free to enter your comments below.
*Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld
