The power of NPS: understand your customers like never before
Have you always wanted to know how loyal your customers are, whether they are satisfied, and whether they would recommend your product/service to friends, family, or colleagues? This can easily be measured by using the Net Promoter Score (NPS): a measurement tool that enables you to truly understand your customers. We are happy to tell you more about how NPS works, why it’s so effective, and how you can apply it to improve customer relationships.
What is the Net Promoter Score?
NPS is based on one simple question: “How likely is it that you would recommend our company to a friend or colleague?” This question is answered with a number on a scale of 0 to 10. The answers are divided into three different groups, namely:
- Promoters: Customers who rate the organization with a 9 or 10. These are the most loyal customers of the organization. They attract new enthusiastic customers because they will speak positively about you.
- Passives: Customers who rate the organization with a 7 or 8. These are neutral customers. They are positive and will not speak badly about you, but they will also not easily make a recommendation to others on their own.
- Detractors: Customers who rate the organization with a score of 6 or lower. These are dissatisfied customers who can have a negative impact on the reputation of the organization.
The Net Promoter Score is calculated by subtracting the percentage of promoters from the percentage of detractors. The number you are left with can range from -100 up to +100. The higher the number, the more loyal your customers are and the greater the chance that they will make repeat purchases and bring even more new enthusiastic customers!
Why is NPS so effective?
The power of NPS lies in its simplicity and focus on the most important factor for business growth: customer loyalty. Measuring the willingness of customers to recommend your business provides a reliable picture of satisfaction with your products or services. This insight is invaluable.
With the help of NPS, you do not only understand which areas of your business need improvement. You can also take targeted action to improve customer loyalty and satisfaction and increase enthusiasm around the organization. By listening to customer feedback and implementing changes based on their suggestions, you can strengthen loyalty and attract new customers at the same time. Last but not least: you can share positive feedback within the organization and create passionate employees!
How can organizations apply NPS?
Focus Feedback offers organizations a simple way to measure NPS. With the help of email surveys, organizations can conduct NPS measurements and easily analyze the results. You gain insight into bottlenecks in the customer experience, but also into what causes enthusiasm.
By taking this action, you can not only increase customer loyalty, but your organization will also gain promoters and ambassadors (both internally and externally)! This ultimately leads to higher revenues and more growth.
