Does Your Net Promoter Score Matter?

Banner_NetPromoterScore_Blog

Your Net Promoter Score (or NPS), can be summed up as a measurement of how likely a customer is to recommend your business to a friend. Businesses ask their customers the familiar question: “How likely are you on a scale of 0-10 to recommend our products or services?” Customers who indicate 0-6 are called detractors, 7-8 are neutral, and 9-10 are known as promoters. Subtract the percentage of detractors from the percentage of promoters to reveal your NPS. Here is why NPS is an important measurement for your business.

Online Reputation

Word-of-mouth is a powerful tool for businesses and NPS can show you whether the talk is positive or negative. There is no marketing campaign a business can launch that will ever outshine a trusted recommendation from a friend. The same logic can be applied to online review sites – the first step in the decision making process for many people. After identifying the promoters in your customer base, encourage them to leave a review of your business. Their positive reviews signal to others that your business is trustworthy and values customer service.

Referral Boost

Research has proven that referred customers provide a greater ROI than other customers –16% over the customer’s lifetime. This is likely explained by the fact that referrals arrive in your office with pre-established trust in your business, trust that you would typically have to earn with other customers. These customers are also likely to be more receptive to upsells of other products and services that you may offer. Your NPS can help bring in more referrals by identifying promoters and leveraging their customer satisfaction to your benefit.

Improves Churn

Customer churn is a problem that businesses of all sizes deal with everyday. Disappearing customers can be a tough blow to your business’ morale, particularly for small businesses. NPS is useful in combating churn because it allows you to identify and reach out to your detractors. Following up with those unsatisfied customers will make them feel heard and appreciated, which is usually enough to prevent churn. Resolving these issues also helps to turn a detractor into a promoter. By using NPS, you can identify the root cause of churn and stop it before it happens.

First-class customer service is one of the main goals of all businesses. NPS will help your business reach that goal by showing your your business the path forward to improve and maintain customer satisfaction.

Don’t be afraid of customer surveys

Don't be afraid of customer surveys

Customer satisfaction is the most important aspect of your business because without loyal customers your bottom line will suffer. The strategy behind keeping your customers coming back is ensuring that each touch-point in their journey is positive. Your business can track their satisfaction with customer surveys, a method that may make you nervous. But don’t be afraid of customer surveys. They can expose issues you may be unaware of like long hold times for phone calls.

Here are some reasons why you shouldn’t be afraid of customer surveys.

Your online reputation will be protected

As customers are checking out at the end of their visit, have your front desk hand them a customer survey. Keep it short with 5 questions or less to ensure they complete it before they leave. This will give them the opportunity to critique any part of their visit that didn’t go well, and most likely prevent them from complaining about it on social media since they already got it off their chest.

For customers whose satisfaction surveys are positive, your front office can utilize that to boost your business’s online reputation. The strategy is simple: send a daily or weekly email to happy customers asking them to leave you a review on Yelp, Google or any review site that is important to your business. Link directly to that site within the body of the email to make it as easy for the customer to complete as possible. This can be done more efficiently with an automation software.

The feedback can help your business

Surveys can expose process or team issues, as well as highlight an employee’s exceptional performance. Review your customer surveys once every quarter and meet with your team to go over good and bad experiences that stood out. It could serve as a training session in ‘what to do’ in situations that have arised, or may arise in the future.

At the end of the year you can also recognize an employee who handled a difficult situation well, or helped pave the way for a more efficient process that needed adjusting.

Customer surveys are a way to empower you and your staff with information on what your customers are truly expecting. Spend time perfecting the questions you will ask, and consider leaving the last question as a free form field so that the customer can be specific in what worked or what didn’t.