More than 31 million businesses operate within the United States. The intense competition is palpable even when you are in the local market. If you want to stand out from the crowd, offer more than satisfactory service.
Contents1. Improve customer loyalty2. Measure business performance and growth3. Get real, actionable feedback for improvement4. Discover and take advantage of promoters5. Compare yourself to your competitorsHow to calculate NPSCommon mistakes in calculating NPSUse NPS to improve your business nowWant your business to thrive? Without much experience, you might wonder how to increase customer satisfaction.
One of the best ways to improve customer satisfaction is to learn your Net Promoter Score (NPS).
Read on as we discuss a few reasons to invest in this method starting today.
When your customer is satisfied with your services, they will become loyal to your brand for a long time. Focus on retaining your existing customers, as it is more profitable. After all, getting a new client costs five times as much.
Loyal customers are essential when you want to maintain the success of your business. The best way to learn how to improve is through NPS. After all, this is a customer satisfaction survey.
NPS establishes the likelihood that your customers will recommend your business to others. It also measures your current business reputation.
The Net Promoter method uses a system guaranteed to have a massive impact on your growth. It provides a reliable metric to measure your performance:honest customer feedback. You'll discover their real opinions instead of your marketing team's assumptions.
NPS metrics also reveal your business potential for repeat customers and referrals. Once you learn these statistics, you can determine your future growth. When you have the highest NPS scores in your industry, you'll outperform your competition twice.
A decent NPS score is between +30 and +40. Your goal depends on your current industry. Either way, a score above +50 is exceptional.
When your score is below zero, start worrying. This is a sign that your business has more detractors. Customer experience issues are likely affecting your service.
A proper NPS system allows you to go beyond scores. Introduce more questions into your surveys to entice customers. This allows them to specify the reasons for their score.
Your customer insights are fast and actionable. It helps improve your business by identifying your dissatisfied customers. By offering them a feedback platform, you will uncover critical issues that cause them to turn away from your business.
After fixing the problem, you can now convince them to go back. Fixing these issues also saves you from losing more customers down the line. This protects your future income since you have a more loyal customer base.
Modern shopping behavior often depends on word of mouth. You usually notice this trend on social media platforms. The vast majority of consumers trust recommendations from friends and family more than other methods of advertising.
Using NPS allows you to find your promoters. These are the people who love your business and aren't afraid to tell the world. Thanks to these people, you can increase positive referrals through word of mouth.
Capitalize on people who give your business a 9 or 10. Ask for a testimonial or encourage them to share your business on social media. These people are ten times more valuable to your business than detractors.
When you can't reach your customers, invest in online customer experience platforms. It can perform this task automatically.
After your customer surveys, show your appreciation for their feedback and ask for a testimonial. When they're short on time, give them pre-written content that they can easily share on Facebook or Twitter.
Using an NPS means following a system recognized around the world. It’s a simple method to establish a benchmark against your industry competitors. As a result, you can better track your progress over time.
You have enough data to have a reliable set of industry benchmarks because most companies use NPS. You will find out if your business is operating at a desirable level.
Now that you know the reasons to use NPS for your business, it's time to learn more about it. The easiest way to start is to ask your customers just one question:
"How likely are you to recommend us to a friend or colleague?" »
These people can answer a question using a scale of 0 to 10. The first represents "highly unlikely" while the second is "very likely".
You can group responses into three categories:promoters, passives, and detractors. Here are the scores to identify your customers:
Count all the scores to get the percentage of detractors and promoters. Subtract the first from the last to get your final NPS score.
For example, if you have 100 responses and have 60 promoters and 20 detractors, your NPS score is +40.
NPS is simple to understand and use. However, you must follow a strict set of best practices. It allows you to obtain an accurate and unbiased measurement.
When you violate these practices, your score will either be too low or too high. The latter is tempting to ignore it since it is what every business owner aspires to. However, this assumption is more damaging to your business.
For example, if you think your business has a solid score of NPS 80, check again. The score may not reflect reality as you may use leading questions in the survey. Sometimes you can include a lot of questions to dilute the impact of the results.
Worse still, you can select the positive answers or link the financial rewards to the highest rated answers. Avoid these biases and focus on getting honest reviews.
Read this Market Check guide if you want to learn more about the differences between CSAT, CES, and NPS.
Here are some reasons to use NPS for your business. Never let pride interfere with your journey of improvement. Use metrics to measure the success of your business.
However, using NPS is just the beginning. Unburden your business by collaborating with external assistants.
Looking for more informative guides? Start reading our other articles today.
