Introduce to Net Promoter Score
Net Promoter Score is a metric tool to measure the customers’ experience with your brand. No business works on guesswork and assumptions. How customers feel about your brand reflects the growth of your business. Further, you become aware of how to provide a great experience to the customers if they are not satisfied with your services. But how would you know about it?
Net Promoter Score allows you to gather sound and valuable feedback from the customers. Further, you can devise strategies to improve customers’ experiences. Consequently, you can transform your business and unleash limitless success.
Read this blog to know how to measure customer loyalty through NPS and the importance of NPS to your business.
WHAT IS A NET PROMOTER SCORE :
Apart from knowing the sales volume and the market share for your products and services, you can gauge the valuable key performance indicators that allow you to measure the product’s success across various stages of the product life cycle.
What is that metric tool called? Its Net Promoter Score. It’s relatively easy to calculator the NPS by merely asking the question :
“How likely is it that you would recommend our company/product/service to a friend or colleague?”
A user has to give a score on a scale of 0-10. A 0 score would signify the least chances of recommendation while 10 being the highest score.
Once you get the scores, you can segment the respondents into three categories :
Customers who give a score between 0 to 6 fall under this category. They are not satisfied and there are no chances that they would recommend your product to their friends or acquaintances.
Customers who give a score of 7-8 points fall under this category. They are attracted to your brand until and unless they find a better one to switch to. You can retain them with great offers.
Customers who give a score between the range of 9 to 10 fall under this category. They are potential advocators for your product. These customers will recommend your products through word of mouth.
How to calculate the Net Promoter Score :
You can calculate the NPS score by subtracting the percentage of detractors from the percentage of promoters. You must understand that the results may vary from -100 % through 0 to 100 %. If we talk about a good net promoter score, it can be anything above 0.
For example, Amazon has a net promoter score of 69, which is 30 % above its industry’s normal range.
How to dig deeper into the scores to evaluate the valuable insights about a customer’s responses and the reason for digging deeper into the scores is to know the psyche behind the score a customer gives you.
- A score cannot tell you the reason why a customer thinks before giving that score.
- You can ask him further about the reasons behind the scores.
“What is the reason behind your score?”
- You can improve your services and send the NPS survey again to evaluate the current situation by asking this question.
HOW TO USE NET PROMOTER SCORE IN PRODUCT DEVELOPMENT PROCESS :
Although we have discussed the procedure to calculate the net promoter score, many marketers get stuck with how to implement the NPS in their product development process.
Below is a step by step process to engage customers with your surveys and attain a better Net promoter score.
Determine the timing and frequency of surveys :
The frequency and the timing of the surveys depend on your business type and model.
A B2B marketer can send the surveys repeatedly. It will help you understand your business’s relationship with customers from time to time. Also, you can know the points on which you must pay most of your attention. It is known as a relationship approach.
Note: You can send the surveys as per your preferences or once a quarter.
On the other hand, a B2C marketer must send the survey within a few minutes of the customers’ action. That means you can send them a survey once they make a purchase or complete a journey. It is known as the transactional approach.
2. Determine the size of the audience :
Relevant and valuable feedback depends on the size of the audience. Before you start collecting feedback from the customers, you need to determine the audience’s optimal size.
- If you have just launched your product and you do not have a massive customer base. You can send the surveys through automated emails and get proficient results. Next, evaluate the responses and dig deeper into the net promoter scores.
- On the other hand, if you send surveys to a smaller sample size. You can process data much faster. As many customers skip the surveys, you can only survey a few customers in case of a larger database.
3. Decide a perfect time slot :
Apart from determining the audience’s right size, it’s essential to decide the perfect time slot. It directly impacts your response rates. Determine the best days and time to engage customers with your surveys. The email has a higher opening rate within a few hours of its delivery so that you can send the surveys via email, and the best days could be Tuesdays and Thursdays.
You can select the time slots when you feel your customers are usually free, in the morning between 8 to 9 or in the afternoon after their lunch breaks. Schedule the survey as per the time-zone of the customers.
4. Use relevant channel as the medium :
Email marketing is the most popular way to engage with customers. You can send your surveys through emails. To get more open and click rates, avoid using capital letters and spam triggering words. Apart from the email surveys, you can schedule the pop-ups while visitors or customers interact with the survey.
Push notifications are yet another effective medium to measure customer loyalty or satisfaction if you have a mobile product. Also, ask for the opt-in for push notifications first to receive them on NPS surveys.
5. Other sources besides NPS :
You can also track the product mentions across social media platforms; that’s how you can know the services’ popularity. You can see other products and services on the same page, and therefore, you can build marketing strategies for your product. Evaluate which social media platform suits best for your product.
Note: Ask for feedback from abandoned customers; you can send an automated message for all the actions where users are deviating from your product and ask the reasons as to why they are deviating from your products. Such feedback would be valuable for your brand’s overall growth.
6. Take actions on the results :
Process the results and make a note of all the issues you need to improve. Also, check-in the demands of the customers, which could be exceptional from what you provide. Check out what competitors are providing and acquire useful methods to implement the changes.
Further, your product team can coordinate amongst the other departments, such as marketing departments, to channelize the improvements. You can uphold a product workshop to implement necessary changes.
7. Take feedback after implementing changes :
Conducting NPS surveys is not a one-time process. It must be ongoing, so once you have made changes in the product. You can again ask for the feedback of the customers. You can send the surveys again depending on the framework of the product framework. It would make the workflow more efficient as well as provide the best customer services.
HOW TO COMBINE NET PROMOTER SCORE WITH OTHER METRIC :
Sometimes NPS surveys are not enough to retain customer loyalty and work towards the development of your brand.
Below are the other metrics you can combine to make a difference :
Apart from gauging the NPS as a mere tool to attain growth, the stakeholders always put the other financial metrics such as the revenue( monthly recurring revenue and average revenue per user) to predict your product’s success.
The satisfaction of customers:
While you evaluate customer satisfaction, you can collaborate the NPS scores with customer satisfaction score and customer effort score. These will help you more to attain maximum customers.
Measuring levels of customer engagement is equally important, which includes tracking the traffic on the website, monthly active user ratio along with bounce rates. You can track the actions of the users and improve the products, thereby waging their loyalty.
Last but not least, your efforts would go wasted if you do not acclaim your promoters. Let your promoters feel that they are the centre of attention and play an essential role in your success. Create a customer loyalty program to reward customers or loyal users for increasing further and retaining the customers. You can track the promoters and offer loyal users great offers and discounts.
Read more: black-hat-seo
Net promoter score is valuable and quite an affordable metric to know your brand and products’ effectiveness. Allow your customers to feel that they are valuable to you to feel the same satisfaction in return.