Four Ways to Grow Your Business Using Net Promoter Score (NPS)
Posted: Sun Dec 22, 2024 10:29 am
As a business owner, growth is probably something you’re always thinking about day and night. The best way to get the attention of new customers, the right way to differentiate yourself from your competitors, the right way to craft a value proposition that increases conversion rates – those kinds of thoughts.
Well, according to Forrester Research (a leading market research firm), by 2020 one of the best ways to drive business growth will be to focus on customer experience, as it is expected to outperform both price and product. It’s easy to see why, given that customer experience comprises:
How much consumers like your brand and how much philippines email address list love interacting with it.
How satisfied are customers with the way their sales representatives treat them?
How satisfied are customers with the service/product they receive.
And one of the most popular ways to measure and improve customer experience today is to implement Net Promoter Score, the methodology used by hundreds of successful companies.
What is NPS?
NPS stands for Net Promoter Score and is a survey that businesses can use to measure how satisfied customers are with their brand, product or services. First developed in 2003, it is now used worldwide.
The NPS Survey system consists of two parts. The first is a question that asks customers how likely they are to recommend your company to others on a scale of 0 to 10. Depending on the answers customers give, they can be grouped into the following categories:
0-6 - Detractors (Dissatisfied customers that you have lost or will lose)
7-8 - Passive (Customers who need a push in the right direction to become loyal)
9-10 - Promoters (Satisfied customers who love your brand and are likely to promote it through word of mouth advertising)
NPS-Poptin
Next comes a follow-up, open-ended question that asks customers what prompted them to give their rating (what they like about your brand, what they don't like about your product/service or customer service, information like that).
What is a good NPS score?
To find out what your score is, use a simple calculation formula: subtract the percentage of detractors from the percentage of promoters.
What qualifies as a good NPS score ? A score below 0 would mean that your company has a lot to do to improve its customer satisfaction levels.
NPS Score
An NPS above 50 would indicate that your business has more satisfied customers than dissatisfied ones, while a score of 75 or higher is proof of customer love for your brand and great positive word of mouth from your referrals.
Therefore, a high NPS score will indicate that your customers' referrals are likely to convert into new leads and more revenue for your business.
Once calculated, your NPS can serve as a benchmark allowing you to compare your performance to that of the competition within your industry.
Well, according to Forrester Research (a leading market research firm), by 2020 one of the best ways to drive business growth will be to focus on customer experience, as it is expected to outperform both price and product. It’s easy to see why, given that customer experience comprises:
How much consumers like your brand and how much philippines email address list love interacting with it.
How satisfied are customers with the way their sales representatives treat them?
How satisfied are customers with the service/product they receive.
And one of the most popular ways to measure and improve customer experience today is to implement Net Promoter Score, the methodology used by hundreds of successful companies.
What is NPS?
NPS stands for Net Promoter Score and is a survey that businesses can use to measure how satisfied customers are with their brand, product or services. First developed in 2003, it is now used worldwide.
The NPS Survey system consists of two parts. The first is a question that asks customers how likely they are to recommend your company to others on a scale of 0 to 10. Depending on the answers customers give, they can be grouped into the following categories:
0-6 - Detractors (Dissatisfied customers that you have lost or will lose)
7-8 - Passive (Customers who need a push in the right direction to become loyal)
9-10 - Promoters (Satisfied customers who love your brand and are likely to promote it through word of mouth advertising)
NPS-Poptin
Next comes a follow-up, open-ended question that asks customers what prompted them to give their rating (what they like about your brand, what they don't like about your product/service or customer service, information like that).
What is a good NPS score?
To find out what your score is, use a simple calculation formula: subtract the percentage of detractors from the percentage of promoters.
What qualifies as a good NPS score ? A score below 0 would mean that your company has a lot to do to improve its customer satisfaction levels.
NPS Score
An NPS above 50 would indicate that your business has more satisfied customers than dissatisfied ones, while a score of 75 or higher is proof of customer love for your brand and great positive word of mouth from your referrals.
Therefore, a high NPS score will indicate that your customers' referrals are likely to convert into new leads and more revenue for your business.
Once calculated, your NPS can serve as a benchmark allowing you to compare your performance to that of the competition within your industry.