An organization’s growth and success massively revolve around how its customers perceive it. For any business, the level of customer satisfaction is directly proportional to its customer retention rate. Therefore, if you ensure your services and products are viewed positively, they are more likely to stay loyal to your company and recommend it to others as well.
To measure the extent of a customer’s satisfaction, companies have integrated a scoring system known as the net promoter score. This system helps distinguish the customers who are more likely to promote your company, from those who might discourage others. Moreover, it has been shown that using this metric is one of the most effective strategies for businesses to boost their revenue and customer base.
Method of Net Promoter Score Calculation
Understanding how to calculate the net promoter score is as essential as any other metric in your business. This system is basically a survey consisting of two questions. Customers are asked to rate their likelihood of recommending the company to colleagues or friends on a scale of zero to ten in the first question. The second query is an open-ended inquiry into the rationale behind the rating they provide.
Furthermore, this method divides the customers into three respective categories, namely, promoters, passives, and detractors, based on the ratings they provide.
Promoters:
Promoters usually tend to give a rating from 9 to 10. This team of customers consists of devoted enthusiasts who are very involved and may also encourage their acquaintances to purchase from the company.
Passives:
Customers categorized as passives rate your company from 7 to 8. Although they are only moderately pleased, passives do not adore your product. This may be so because of various reasons. Moreover, they might switch if a rival’s product appeals to them.
Detractors:
They assign grades between 0 and 6 as these individuals are displeased or angry customers who might soon leave. To retain them and stop them from spreading negative information about your business to others, it’s critical to act swiftly in response to their criticism. The percentage of detractors must be subtracted from the percentage of promoters for the net promoter score calculation. The result usually falls between -100 and +100.
Boosting Customer Satisfaction with Employee Net Promoter Score
The evolution of NPS ratings over time might reveal whether a corporate culture is thriving or faltering. This statistic is frequently used by companies like Telvista and other top-tier organizations to assess the effectiveness of customer satisfaction rate. It is extremely useful for your company to receive reviews from promoters, passive clients, and detractors since you can use it to increase client retention.
Here’s how you can leverage this metric to boost retention.
Ensure Accuracy of the Metric
It is essential that you ensure the assessment you develop is accurate. Companies tend to make common mistakes with the system’s accuracy. These may include the use of methods like face-to-face surveys instead of anonymous online ones. This method is not recommended as it increases bias. Moreover, it is not advised to ask leading questions on the surveys, conduct surveys of only satisfied customers, higher scores leading to rewards, or ask a lot of questions together. All this can be avoided by utilizing NPS micro surveys.
Customize NPS Survey as per Your Business Type
Just as the net promoter scores vary, likewise NPS surveys tend to differ as well. Though most companies use similar NPS surveys, it is absolutely up to you to customize yours. This can be done by selecting an optimal time for presenting your survey to the customers, tweaking it as per your brand’s personality, and customizing the channels of sharing the survey.
Your NPS survey can be integrated into your customers’ experience seamlessly by personalizing it, which enables you to gather NPS information continuously. By tracking seasonal changes, identifying response trends, and conducting repeat customer surveys without feeling survey fatigued, frequent NPS data collection will help you better understand your customers. Regularly conducting NPS surveys through your inbound and outbound contact center or by other means helps evaluate the efficacy of your present initiatives and make real-time adjustments when you know how customers feel about you. All this can significantly increase your retention rate in the long run.
Respond to the Detractors
Contact the critics right away. You have a chance of retaining them if you can promptly resolve their issues. Even if you are unable to satisfy their requirements, it is crucial to appreciate their input.
If you don’t have the time to individually respond to every critic. You can still lessen unfavorable sentiments by automation of survey answers through the integration of multichannel customer support services. Email or text them as soon as you can to express gratitude for their response and to request additional input. Make adjustments after learning the reasons why detractors didn’t endorse you and relay this information to your sales team. It will allow them some flexibility in terms of what they might present as a counterargument to these complaints at the moment of sale or renewal.
Criticism should be taken into consideration while designing new products, or services so that problems can be avoided.
Appreciate the Respondents
Gratitude should be expressed to your devoted customers. Receiving a “thank you” email is a terrific lift and motivates them to stick with you. It could also be a personalized thank-you video containing some behind-the-scenes information. Use an omnichannel contact center model to send a message of gratitude to your loyal customers through various channels.
While most of these initiatives ought to concentrate on your promoters. Few of these can be directed towards your passive base as well, with the goal of improving those 7 or 8 ratings. By offering premium services, privileged access to market data, or trade-in deals, you can enhance the value of your initial product. Passive clients may be persuaded by these strategies to develop a stronger bond with you.
Conclusion
Net promoter score won’t do anything to expand your company as a stand-alone statistic. But it’s a useful place to start when trying to determine customer loyalty and pinpoint places where your various business endeavors may be further improved.
Frequently Ask Question Section:
What is a net promoter score?
Net promoter score is a metric used to gauge customer experience with a survey. That has only one question asking customers about their likelihood to refer a certain business, item/product, or service to an acquaintance or coworker.
What is a good net promoter score?
As per research and the creators of the NPS system, anything above 0 is considered good. 80 is considered to be the highest achievable score.
How do I get an NPS?
If you subtract the percentage of the detractors from promoters, you can calculate the NPS.