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Every business or brand relies on its customer for the success and popularity of brand image and brand name. The more loyal the customers are the more the brand thrives in popularity and revenue.
Net Promoter Score® is one such method that gauges customer loyalty and satisfaction with the business. NPS® involves the process of asking the customers how they feel about your company. But, most importantly, how likely the customer would recommend your brand to their acquaintances?
We can all agree that word-of-mouth or recommendation is one of the best ways to win new customers. Many popular labels make use of NPS® to measure customer loyalty towards their company/brand.
NPS®, as a statistical metric in the business market, helps small-scale as well as large-scale companies organize a goal- a high NPS®– to achieve it and quantify over course of time.
NPS® can also be helpful for a company to predict its future business growth. A company with a high NPS®, higher than the industry average, or a steady advance from previous NPS, can attract loyal customers proving a prospective future success.
A high NPS® score demonstrates a healthy relationship with customers and their satisfaction with your service. The two-way healthy and loyal relationships are likely to turn your customers into preachers and promoters for your company leading to positive growth.
According to Bain & Company, NPS® is a philosophy that dedicates towards loyalty from customers and employees.
NPS® score which ranges from -100 to +100, consider any score above 0 as a good NPS®. While a score of 70 and above are generally expected in popular companies but it is not a steadfast rule in the case of many popular and global companies.
According to Temkin Group, NPS® aids a business in making a well-informed decision.
When your company is customer-centric and depends on customer loyalty, tracking the likelihood of your customer’s recommendation will lead to improvement in NPS®. NPS® is a means to gain insight into customer feedback.
Analyzing customer journey across the range of service is one good way to start on NPS®. Customer feedback taken in regular intervals is a crucial part of the Net Promoter Score process.
The Feedback-action-feedback-action cycle establishes trust between the organization and the customers. This trust leads to strong word-of-mouth or recommendation which awards an increase in NPS®.
A 10% improvement in customer experience score of a company can have an impact of more than $1 billion in revenue, according to Forrester.
Customer retention, especially when your company is based on customer subscription, has greater significance in the growth of the business. You would want the customer to renew their subscription with your company and continue to use your service in the future as well.
Net Promoter Score helps in preventing a possible disturbance in customer loyalty and satisfaction. If any of your customers are unhappy with your service or product they can leave a comment complaining about it in your NPS survey.
This can notify the customer support team and the entire organization about the unhappy customer. You can reach out to the customer to understand the issue and take action accordingly to reconcile before it can lead to losing a loyal customer.
Turn detractors to promoters. Increase Customer Loyalty. Get more customer referrals.
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Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.