Net Promoter Score is a method designed to gauge a company’s overall customer satisfaction and willingness to recommend the product or service to their family and social circle. Ultimately, the goal here is to grow your business through providing customer experiences that customers love and keep coming back to.
Introduced in 2003 and revolutionary at that time, NPS in combination with modern technology empowers organisations to monitor customer satisfaction in real time and act on powerful insights generated by various NPS platforms. No longer is it enough to blast off quarterly or annual satisfaction surveys. The age of the modern customer requires a much more proactive approach with great a great feedback experience and responsiveness.
Failing that, businesses risk customer churn to competitors or, worse, unfavourable online reviews from customers looking to vent and warn others about their poor experience.
88% of consumers have read reviews to determine the quality of a local business, while only 27% of online searchers are willing to use a business that has a 2-star Google rating.
Increasing retention
Most unhappy customers just leave. In fact, 96% of dissatisfied customers don’t complain. For every complaint you hear, there are potentially 25 others that haven’t complained. Imagine being able to capture those customers before they decide to leave, and address their issues with them. You have a good chance of that using an NPS platform that can alert you to any issues. Your business retention rates can kick up with little effort if the feedback process is made easy and convenient for the customer. Make sure to set triggers which send you a message or email as soon as a low customer feedback score is received, enabling you to take action.
Good news is that most detractor issues are quite often a simple misunderstanding or a simple resolution that can be achieved quickly. 67% of customer churn is preventable if the customer issue was resolved at the first engagement.
Make it easy
When it comes to the user experience of your NPS survey, the key is to make it really easy and convenient. Don’t ask too many questions! The contemporary customer is often time-poor and you risk losing them if the feedback process is too long, especially on top of a poor experience. Capture your customer feedback using input methods and devices they are familiar with.
The easier you make the feedback process, the better response rates will be - giving you unique insight into what your customers want and crating opportunity to increase sale value. For example - we’ve recently seen a supermarket ask their customers what they want to see more of (see image below). Their NPS survey responses showed demand for a wider range of ‘ready to eat’ meals. The store quickly acted on this feedback with a new meal display, growing their sales in this area.
Ask. Act. Improve.
Once a customer has given feedback and you show them that you are listening to them, it is easy to convert them to a promoter of your brand. Loyal customers are the best single source of recurring and growth revenue - the probability of selling to an existing customer is 60-70% while probability of selling to a new prospect is 5-20%. Also, loyal customers are more likely to repurchase, forgive and refer to your business.
The important action is to listen to your customer feedback actively and reach out to those customers who give you feedback. Then act on the data, this is the difference between just having insight and creating operational change.
This blog is an excerpt from the '5 ways to grow your business with NPS' eBook.
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