The Net Promoter Score (NPS) is one of the world’s most popular customer loyalty metrics. Many successful businesses rely on its ability to capture intelligent and actionable customer feedback.
But what makes the Net Promoter Score so popular in comparison to other customer satisfaction metrics?
Your net promoter score is based on the answer to one simple question: “How likely are you, on a scale of 0-10, to recommend our brand to a friend?”.
Instead of being a daunting task for customers, NPS surveys are much more appealing to respond to. And so response rates are higher compared to traditional surveys.
Interpreting the results is easy for you too. Your score is just one simple figure that can be monitored over time and analysed for any patterns or themes.
You can learn more about the Net Promoter Score calculation here.
Scores are easy for everyone to grasp and can often be measured in real time, making them very actionable.
This means that front-line employees can immediately correct any potential issues. Or they can encourage happy customers to make public recommendations, on social media for example.
Today, thousands of companies around the world use the net promoter score. Household names like Apple and Amazon rely on its ability to effectively measure customer happiness and will regularly release news of their scores.
This means that you have the ability to see how you compare to businesses in your industry and learn from their successes or pitfalls.
The Net Promoter Score encourages you to focus on creating more Promoters (people who score your business a 9 or 10). Research shows that this can increase your revenue and customer lifetime value.
That’s because promoters are more likely to stay loyal to your brand over competitors.
They are also more likely to refer you to others, reducing your costs to acquire new customers such as advertising or marketing. More than 80% of positive recommendations come from promoters!
Lastly, Promoters are less price sensitive compared to other customers. They rarely need a sale or discount to entice them to buy from you.
If you’re losing customers and want to know why or your simply looking to grow your business then Net Promoter is for you!
You’ll get better at identifying customers who are at risk of leaving and those who are your biggest promoters. Most importantly, you’ll have a clear opportunity to improve customer experiences.
What benefits of Net Promoter Score appeal to you the most compared to other customer satisfaction metrics? I’d love to hear from you in the comments section below.