How to achieve a NPS of over 90%
When running a business, it can sometimes seem difficult to please every one of your customers, but understanding them is a step in the right direction to achieving customer satisfaction.
Using the Net Promoter Scoring (NPS) System, you can get an insight into how much your customers believe in you and your business practices, and how likely they are are to refer you to a connection of theirs.
The NPS System is also helpful for:
- increasing the rate of consumer retention;
- increasing long-term customers;
- increasing the number of purchases made; and,
- increasing customer engagement by their providing ideas and feedback.
What defines a NPS score
An NPS score is defined by asking, on a frequent basis, a range of questions to a sample of all major customer segments. The questions are closed-ended using a 0-10 scale, which allows the customer to provide the business with a rating. All answers are categorised into three types of feedback:
Promoters: (rating 9-10). Promoters are the type of customers businesses need to remain thriving, sustainable operations. Promoters are likely to express their positive experiences about your company actively. They remain loyal and are the force behind the majority of valuable organic referrals.
Passives: (rating 7-8). Also referred to as the “just satisfied” group, passives can often be uninterested because they’re not supportive nor influential promoters. They have a mediocre point of view about the product and/or service but are can be swayed to become either a promoter or a detractor, depending on future interactions.
Detractors: (rating 0-6). Detractors are the type of customers that a business’s bad reputation can be built on. They actively express their negative experiences which can have a detrimental impact on a business of any scale. Detractors may include customers who generate subsatntial income for the business, however because of the criticisms, they may do more damage than their current or potential worth.
Any opportunity for the customer to provide feedback or comments can assist making improvements or finding common themes that may be negatively impacting your business.
Source: Net Promoter System
Why NPS matters?
The NPS system is not only straightforward for, and accessible by, all major businesses, but it also helps increase the effectiveness of your communication to your customers. Because it impacts both negatively and positively, it’s important to get it right. Marketing done within an organisation can be controlled, so most of the time is focused within this area of promotion. It’s also important not to write off customers as some of the most powerful and useful marketing tools are word of mouth referrals and opinions. Because of this, it’s paramount to ensure customers are sharing positive experiences.
Just think, you could be spending thousands of dollars on marketing annually, only to find that three of your customers have had a negative experience with your company and are undoing a lot of your marketing efforts. It’s safe to say that spending a little bit of time to find these ‘pain points’ can mean you’re supporting your marketing with customers echoing your same marketing messages. The pay-off is apparent, not only for your business, but importantly, it reflects that you take the time to listen to your customers.
The benefits go beyond the business
One of the main points to be aware of is the opportunity that is produced from reaching out to your customers. It can repair that broken link and promote two-way communication with customers, and once the cycle is established, proves beneficial to improving the circumstances of both parties. It is also a really good time to connect with your customers and find out if there’s anything else they would like to share. This often uncovers points that are unrelated to their latest purchase, but nevertheless provide insight into the customer experience.
More than a score
When considering feedback, companies should not be focused on the score - the aim instead is to focus on the potential for improvement that is enabled as a result of the feedback. Feedback does need to be carefully considered though. It may be that a certain point raised is only true for a minority of customers, or it could be a symptom of a greater issue requiring improvement. Subsequent improvements should implemented in a way that not only improves the business but also maintains a customer-centric focus.
Want to know what your customers are saying about your service? Why not start by contacting them today? It’s doesn’t have to be a premium-priced subscription to a service made for corporate companies. A simple Excel spreadsheet, such as the one below, can be just as beneficial to ultimately increasing customer satisfaction.
An example of a basic NPS temple in Excel format.
For more information visit http://www.netpromotersystem.com.
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