Use NPS to Improve Your Business

Net Promoter Score

I’ve found the net promoter score (NPS) to be a very powerful tool on several fronts that requires little time from the respondent:

  1. Asking the ultimate question, “On a scale of 0 to 10, with 0 being ‘none,’ what is the likelihood you would recommend our product (service, company, etc.) to a friend, family member or colleague?” is a quick and easy way to get feedback from customers and open the door for further dialogue.
  2. Asking the follow-up question, “Why did you give us that score?” will provide some insight which can inform your follow-up.
  3. Every response is an opening for your to continue the conversation, extend the dialogue, with your customer by thanking them for providing their feedback since it’s critical for you and your firm to improve.
  4. A respondent that gives you a “9” or “10” is a “promoter.”  Not only should they be thanked for their positive feedback, which needs to be shared with your team, you should also ask these respondents for referrals and for them to share their thoughts via social media.  Make sure you provide the links to your primary social media channels to make sharing as easy as possible.
  5. A respondent that gives you a “7” or “8” is “uncommitted.”  You response to them will have a large impact on whether they’ll become a “promoter,” a “detractor” or a former customer.  By letting an “uncommitted” customer know you appreciate their feedback and you aspire to convert them to a “promoter,” you are letting them know their business is important to you.  Now, you need to ensure you deliver and outstanding customer experience the next time they give you the opportunity.
  6. A respondent that gives you a “6” or lower is a “detractor.”  A few years ago, a business-owner could just write these respondents off as “former customers.”  Today, with the growth of social media, you must reach out to a “detractor” immediately and resolve their issue or risk a “detractor” that’s active in social media with ruining your brand.  “Detractors” are invaluable to your business.  If they don’t complain, you don’t know there’s an issue that needs to be addressed that others have not felt compelled enough to complain about.  Additionally, there are a number of studies that show if you address the concerns of a “detractor,” they will be more loyal, and valuable to your business, long-term versus the customer that never complains.

As a business owner, my biggest concern around NPS would be low response rates.  The survey is so quick and easy, if a customer is not responding, it shows they’re not engaged with my business and don’t care about our relationship.

It’s worthwhile to reach out to non-responders as well to enhance engagement.

NPS is a great way to begin and continue a dialogue with customers.  It’s how you build trust, repeat business and profitability.

How have you used NPS to improve satisfaction and profitability in your business?

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About Insights From Analytics

Integrated marketing professional who generates insights from analytics to increase revenue. Daily blog now resides at www.insightsfromanalytics.com/blog.
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4 Responses to Use NPS to Improve Your Business

  1. Dr Alka Khungar says:

    Hello. Yes we have used NPS for over 5 years in our company and have realized that it is not a true indication of customer satisfaction. Through our Voice of the Customer studies, I have seen that customers may be satisfied with you, but will still not recommend you to their friends or families because “they” make the decision that their friends and family will not need our services. this could be either due to their perception of their networks’ needs, budgets, lifestyle etc. Also, some customers have products that they have purchased years ago, but they are not aware that our company has a newer product line and will tell their friends that we may not be the right choice. On the contrary, some customers will not be satisfied with their service and yet give a high ranking NPS because, again, THEY, decide the needs for their friends and families or they know that they may not have a choice but to utilize the same cable company (e.g) that their area services because they are not allowed to switch. – Dr Alka Khungar

    • ctsmithiii says:

      Alka:

      Thank you for the feedback. I agree that a dialogue with the customer will lead to greater insights. As such, I suggest using NPS to promote a dialogue with your customer regardless of the score given. Keep the dialogue alive to strengthen the relationship.

      Best regards,

      Tom

  2. Dr Alka Khungar says:

    Hi Tom,

    Appreciate the response. I wonder if organizations ask the right question to gather NPS feedback. I look at their willingness or likelihood to recommend our products or services to their friends and families. Is that the standard?

  3. ctsmithiii says:

    This is the standard from the Satmatrix website:
    “How likely are you to recommend to a colleague or a friend?”

    http://www.satmetrix.com/book/operatingmodel.html

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