Net Promoter Score? Of course it matters what your customers think about you. More than that… what they say about you, especially online. With ConversionXL reporting that 88% of people trust online reviews as much as personal recommendations, and that 39% read reviews on a regular basis it’s clear that the way people share their feelings about your products and services carries a huge amount of weight.
What is NPS?
A Net Promoter Score Survey like a Customer Satisfaction Survey records feedback on a scale usually measuring from 1 to 10 to gauge the loyalty of a firm’s customer relationships.
NPS based on the answer to a single question: ‘How likely is it that you would recommend our company/product/service to a friend or colleague?’ where 0 represents not likely at all and 10 extremely likely.
Proven, Reliable Metrics
A proven, reliable metric to help you measure customer sentiment, satisfaction, and loyalty the Net Promoter Score Survey is a popular tool used by businesses to target an audience and determine brand Promoters, Detractors or Neutrals.
Customers fall into one of 3 categories to determine an NPS score:
- A score of 9 or 10 represents a loyal and enthusiastic customer – a Promoter
- Score of 7 or 8 represents Passives. Satisfied but not happy enough with your service to be a promoter
- A score of 0 to 6 represents a Detractor. Unhappy customers unlikely to buy from you again, who may even put others off
The way to calculate an NPS is easy. You simply subtract the percentage of Detractors from the percentage of Promoters. Hey presto.
NPS matters for two important reasons.
New Customer Acquisition
As mentioned above if you’re picking up a low NPS this is likely to be reflected in online reviews and commentary. With so many buyers turning to user-generated reviews and evaluations over advertising as a buying guide then clearly sales will suffer. On the other hand, a strong NPS will boost sales with almost 70% of respondents more likely to purchase a product if a friend talked about it on social media or email.
As we all know it’s significantly cheaper to retain clients than win them. Which makes customer retention a profit imperative – a 5% increase in retention can increase profits by up to 95%. NPS plays an important role in identifying barriers to retention, an early warning signal of things going awry making it possible to right wrongs, reach out to detractors. An early warning signal too of where you are succeeding.
NPS – Your Lens on Customer Satisfaction
NPS – it’s about understanding. Continual understanding. The faster and more clearly you can identify your loyalty wins and losses the faster and more clearly you can do something about them.
Find to how we use Net Promoter Score Surveys to understand customer satisfaction, inspire PR campaigns and help grow your business.
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