Your no-fuss approach to customer service seems like a simple recipe for success. You make existing clients as happy as possible by delivering great service and even better products they can’t resist – all in the hope that they’ll recommend your business to their friends, colleagues, family members and everyone they ever meet.
Since referred customers have a 16 per cent higher lifetime value, it’s a solid strategy.
But maintaining customer loyalty is difficult … and it’s even harder to measure.
That’s where NPS comes into play.
What does NPS mean?
For anyone who’s not heard the term before, let’s start with the basics.
Net Promoter Score (NPS) is a metric system for collecting customer data through a basic survey that asks one question – ‘how likely is it that you would recommend [xxx] to a friend of colleague?’
Respondents answer on a scale of 1-10 and are then classified into three groups: detractors (0-6), passives (7-8) and promoters (9-10). Your final score is calculated by subtracting the number of people who won’t recommend you from the number that would.
Overall, it’s a pretty strong measurement of where your business sits with its customers.
Although you can collect the data yourself, the quickest way to find out your net promoter score is using Questback-powered NPS surveying software from the likes of Precision Feedback.
It lets you create reports efficiently and comes with a bunch of extra features to help you properly track and respond to results.
How do I improve my NPS?
Getting your score isn’t difficult, but improving your NPS and using it to build stronger, longer-lasting and more lucrative relationships with your customers is.
So to help you close the loop, as it’s normally called, we’re sharing a few basic tips for making the most of NPS systems.
#1: follow up to every response
View your NPS as an entry-point for starting conversations with customers. Follow up on all responses with further more in-depth surveys to gather extra data about their experiences.
Create three surveys, each one geared towards detractors, passives or promoters, so that you end up with a strong overview of both the positives and negatives.
#2: acknowledge your promotors
Although your NPS is a great way of identifying and engaging with detractors, all with the aim of eventually turning them into happy customers, don’t forget about acknowledging your promoters as well.
Instead of just taking them for granted, set up a competition or scheme that rewards them for tweeting or posting a review online.
#3: focus on satisfying passives
Passives are customers who didn’t necessarily have a bad experience, but nor did they have an overly amazing or memorable one. This means they’re likely to quickly ditch your brand for another competitor that looks better or cheaper.
As such, you need to think longterm when communicating with them. Focus on establishing a more personal relationship with them that will build trust (send a small token of thanks to them for responding to the NPS survey or offer them a discount on future purchases) to win them over.
Remember, your initial NPS means nothing on its own. Your follow-up activities to close the loop and improve your score is how you’ll turn customers into loyal brand ambassadors.