Consider any scenario where you’re faced with a major decision –
Take, for example, a personal purchase, like buying a new TV or a new car. How do you learn about the products you should be buying?
For most people, that boils down to two ways – the internet and taking recommendations from people you know. Now, the internet can give you all the facts and give you a ton of reviews, but for many people, that’s just not enough.
That leaves us with personal endorsements. Recommendations from friends and family are incredibly valuable to customers. Studies show that over 80% of people put a higher emphasis on recommendations from friends and family than any other form of marketing or advertising.
This puts any company or business which deals with the mass market in a bit of a spot. No matter how good your product or service may be, or how on-point its advertising is, it can still be overlooked by a customer who feels that their great uncle or mother-in-law’s suggestion carries more weight.
Net Promoter Score or NPS is an index created to survey customers on the basis of a single question “How likely are they to recommend your product or service on a scale of 1-10 to a friend, family member or colleague?”
Based on this rating, respondents can be classified as either promoters (Rating 9-10), passives (7-8), or detractors (0-6).
The Net Promoter Score is calculated by subtracting the percentage of customers who would be classified as detractors from the percentage who would be classified as promoters.
Using NPS in a way that’s right for you
So, why is a simple metric so important? It’s only natural for any company or business to have its fair share of detractors. Whether it’s intentional or not, these complaints can cause churn. If they happen to voice their opinion or negative experience on a public platform, they can plant a negative image in the minds of potential customers.
Deal with your detractors
You need to consider the fact that detractors may have a genuine grievance about your product or service and reaching out to them to find a resolution can not only help you resolve issues in your offerings and retain customers but also create advocates for your brand.
NPS can help you by providing useful insights into your customer’s requirements, and what your product or service’s strengths and weaknesses are.
Choose your spot wisely: Reach where most effective
Getting insightful customer feedback is no easy task. Customers will not always have the time to give you feedback — be it positive or negative. This means you have to be strategic about approaching your customers for feedback, while making sure you get all the data you need.
Surveying customers too early for their NPS feedback can give you false scores based on first impressions and, even if positive, it may not reflect their experience down the line.
Integrating NPS with analytics for better results
NPS can be the basis for a more comprehensive set of questions. You can easily integrate it with a survey platform to elicit more detailed feedback. It’s possible to organize scores and analyze customer behavior.
Using NPS-based data with your internal resources can help you understand why customers use your offerings the way they do and how you can keep them happy for the foreseeable future. One such tool is Voxco Analytics – it’s a comprehensive platform which can help you turn your NPS data into insights
Your promoters are your allies – Let them know!
It can be easy to forget the customers already in your corner, but that would be a waste. Reaching out to people who have scored you an 8 or higher, and asking them for further feedback will go a long way in making them feel valued, and ensure their loyalty. You could ask them to refer your services to others, and perhaps even incentivize them to do so.Try incorporating a theme of being thankful for their time and that their opinions have value and have the potential to create meaningful and possibly tangible change.
We know the weight word of mouth carries, so why not use it in your favor as much as possible?
As a concept, NPS is as simple as it gets. It can help you get just the data you need to make improvements to your overall customer experience and reduce churn in one go. The biggest businesses in the retail sector have successfully used NPS to take their customer experience to new highs and coupled with modern tools for web surveys and analytics platforms, it can be a potent tool for any business.