Your Net Promoter Score (NPS Score) is a valuable metric that can tell you how likely your customers are to recommend your company to others. It’s a great way to measure customer satisfaction and loyalty. In this blog post, we will discuss ways that you can improve your NPS score and keep your customers happy!
Why are NPS scores so important?
You need to understand what your customers think about you before you can make any changes to your business. This is called “customer feedback” and it’s an essential part of running a successful business. The best way to get customer feedback is to ask them directly. You can do this through surveys, interviews, or focus groups, and the NPS is a well know scoring system.
The history of NPS
The NPS was developed in 2003 by Fred Reichheld, a Bain & Company partner, and Satmetrix systems. It was originally introduced in Reichheld’s book The Ultimate Question: Driving Good Profits and True Growth. In the book, Reichheld argues that the most important question companies should ask is “How likely is it that you would recommend our company to a friend or colleague?” This simple question is the basis of the Net Promoter Score.
Reichheld believes that this one question can be used to predict a company’s growth. He argues that companies with more “promoters” (customers who are likely to recommend the company) will grow faster than companies with more “detractors” (customers who are not likely to recommend the company).
How is the NPS calculated?
The Net Promoter Score is calculated using a simple formula:
NPS = % Promoters – % Detractors
Promoters are customers who answer the question with a score of nine or ten. Detractors are customers who answer the question with a score of zero to six.
NPS is calculated by subtracting the percentage of “detractors” from the percentage of “promoters”.
-Promoters are customers who are extremely satisfied with your company and would recommend it to others.
-Detractors are customers who are unhappy with your company and would not recommend it to others.
-Passives are customers who are satisfied with your company but are not particularly loyal.
Does the NPS system work?
The NPS system has been used by companies all over the world, and it has been shown to be a reliable predictor of growth. Studies have found that companies with high NPS scores experience faster growth than companies with low NPS scores.
There are some criticisms of the NPS system, but overall it is a valuable metric for measuring customer satisfaction and loyalty.
Ways to track NPS scores
You can use a number of different methods to track your NPS score. Here are a few popular options:
-Online surveys: You can use online survey tools like SurveyMonkey or Google Forms to send out surveys to your customers.
-In-person surveys: You can also conduct in-person surveys by asking customers face-to-face or using a kiosk in your store.
-Phone surveys: You can call customers and ask them about their experience with your company.
Once you have collected customer feedback, you need to analyse it to see where you need to make improvements. This is where NPS comes in. NPS is a metric that allows you to measure customer satisfaction and loyalty.
How can you improve your NPS score?
Here are some tips for improving your NPS score.
Be transparent with your customers. You can improve your NPS score by making changes to your business based on customer feedback. if you find that many of your customers are unhappy with your customer service, you could make changes to your customer service policies. If you find that your products are not meeting customer expectations, you could make changes to your product line. Whatever changes you make, be sure to communicate these changes to your customers. Customers appreciate when companies are transparent and responsive to their feedback.
How can you be more transparent with customers?
-Be responsive to customer feedback: Make sure you take the time to respond to all customer feedback, whether it’s positive or negative.
-Make changes based on customer feedback: Show your customers that you’re listening to their concerns and making changes to improve their experience.
-Communicate changes to customers: Let your customers know about any changes you make to your business, whether it’s a change in policy or a new product.
Give them something they want.
Sometimes there will be some quick fixes thrown up from an NPS survey. However, in order to really improve customer satisfaction and turn detractors into promoters, you need to give them something they want. This could be a loyalty program, a discount, or simply better customer service. Whatever you do, make sure it’s something that your customers will appreciate.
What are the missing gaps in your business?
Customers may not say “I want a loyalty programme’ – but if they have been receptive to telling you what they want, you can make an assumption based on their needs that this could be something they would want.
Some NPS software will give you the ability to segment your customers so you can target those who need a little more love to improve their score.
Ideas to improve NPS over the long term
-Loyalty programs: You can create a loyalty program to reward your best customers.
-Discounts and coupons: You can offer discounts and coupons to encourage customers to buy from you again.
-Better customer service: You can improve your customer service policies and procedures to better meet customer needs. This may require an internal shake up!
Don’t forget to thank them.
Thanking your customers goes a long way towards improving your NPS score. It shows that you care about your customers and appreciate their business. You should also make an effort to follow up with your customers as often as possible. This helps build trust between you and your customers.
The best way to thank your customers is by giving them great service. Show your appreciation for their business, and they will be more likely to recommend you to others. You can also send thank-you notes or cards, give out loyalty rewards, or offer discounts and coupons. Whatever you do, make sure your customers feel appreciated.
Need help boosting your NPS score? Consider small rewards through the Simply Thank You onecode.
