Imagine a scenario where your customers love your products so much that they can’t stop talking about them to their friends and family. Sounds amazing right?
They not only become repeat buyers but also start promoting your products to other potential buyers. Having products or services promoted by your existing customers is equal to a heaven-sent for businesses across the world.
A customer’s willingness to promote a brand’s product or service can also be counted as a key performance indicator. This is where the idea of having good net promoter scores pops up.
What is a net promoter score?
In simple words, a net promoter score or an NPS is a metric that is used across the globe for measuring customer loyalty. Through this metric Businesses question their customers about how likely they are to recommend their products and services to a friend or a colleague. A net promoter score or an NPS can be different for each industry. It helps people understand how well a particular business is performing in comparison to its industry.
All about NPS calculation
The customer is asked to select a number or rating on a scale of 0-10. Here 0 means the least likely they are to recommend the service or product and 10 means the most likely they are to recommend. After the collection of responses is done you have segmented each customer’s response into three categories based on how likely they are to promote your product. – i.e –
- Promoters (9 or 10 ratings)
- Passives (7 or 8 ratings)
- Detractors (0 through 6 ratings)
- Promoters who give you a score of 9 or 10 are customers who are very loyal to your brand and also play the role of brand ambassadors due to their willingness to promote. From promoting products through word of mouth to promoting them on social media platforms, promoters actively communicate about the product.
- Passives are customers who are probably satisfied with your products or services but not enough to do something about it or to actively promote it.
- Detractors are customers who are very unhappy with your products and services and are very unlikely to make a purchase from your business again. In addition to this, Detractors may even bad-mouth your products or services to their peer groups.
To find out your Net Promoter score use this formula –
NPS= % of Promoters — % of Detractors
The final NPS calculation or Net Promoter score can range from a low of -100 to a high of +100.
What a good Net Promoter Score looks like
On a general basis, having a Net Promoter Score that is below 0 is thought to be a problem. It is an indication that there are hurdles present and that businesses have to deal with a lot of issues. It is also indicated that immediate action needs to be taken.
If a business manages to score between 0 and 30, it is considered though decent they still have a lot of room for progress. Any score above 30 means that your business is doing great and that your customers are so in love with your products that they don’t hesitate from promoting them among their peer groups. Remember, the higher the number the more possible it is for your business to gain new customers or prospects.
Ways to Improve your Net Promoter Score
1. Develop a standard process for tracking your NPS and reacting to it.
Keeping a regular check on your nps scores is very important. Consumer trends and customer expectations are always evolving. When you catch hold of a Detractor or a Passive customer it is necessary that you take action by asking them why they feel so about the product or service. Doing so not only provides valuable information but also allows room for product improvement.
2. Give your employees a chance to engage with your customers.
Giving an opportunity for your customer service agents or other employees to engage with your customers is an excellent way of putting them in the shoes of customers. It helps them understand how their decisions can affect the way customers perceive the brand or product. Having a first-hand understanding of how customers see and use products can help your employees create better strategies and product features that serve your customers better creating a positive impact on your NPS.
3. Invest in your customer service agents.
The way customers look at and perceive a business or a brand impacts the overall growth of the organization. Every interaction that the customer has with the brand shapes how they see the brand and this is exactly why businesses need to invest more in those employees who face the customers and are instrumental in shaping a customer’s perception about the business. Investing in training your customer service agents can go a long way and can positively impact brand visibility as well.
Why Keeping track of your NPS Score is important
Keeping a track of how your customers feel about your business and more importantly how they feel about your brand is very important. A regular check on the NPS score allows businesses to understand how customers or their potential customers see their brand. Collecting an NPS score is essential but what is more important is the action that comes afterward. Making use of the valuable customer feedback or insights that the Net Promoter Score provides is essential for all busiesses.
About the Author
|Namitha R V is a freelance content writer and copywriter whose primary focus leans on B2B and B2C content writing. She has worked on several SEO projects and has a demonstrated history of writing for diverse content requirements like – Long form blog posts, Optimized Website content, Infographics, Ad copies, Social Media content, etc.|