Net Promoter Score surveys (NPS) are a universal benchmark for companies who want to continuously measure customer loyalty. The reason it’s so popular has a lot to do with its simplicity and ease of use. NPS measures customer loyalty by asking two question:
For the first question, those who respond with a 9 or 10 are called Promoters – customers who like your brand and service and will most likely choose it again. Those who respond with a 7 or 8 are called Passives – customers who are satisfied with your offering but not overly enthusiastic. And finally, those who respond between 0-6 are called Detractors – customers who had a poor/average encounter with your brand and are therefore unlikely to recommend you.
The second question is open-ended and allows the customer to provide the reasons for their score. This step is critical in understanding what customers are thinking in their own words.
So how can companies improve their NPS rankings? Here are a few ideas:
- Get Referrals
If you’ve already identified Promoters and you’re doing nothing to help them refer you to their family and friends, you are failing at marketing! Promoters are champion users of your product or service, and should be treated as valuable assets that you should nurture and reward.
- Convert More
Create more feedback channels for your Passives. Address their friction points (likely minor) and ask them how you can improve. You’ll want to move them up the chain and turn them into Promoters. They are the perfect candidates for this as they already enjoy your product or service.
- Stay Responsive
Sometimes the worst feedback can offer the best management lessons. If you have a product or service that’s generating more detractor responses than others, we’re pretty sure you’re going to want to know why. Timing is everything here. Contact survey respondents as soon as possible to find out about their experience and how you can improve. Treat this as a second chance to make the right impression. The point is, you have to try.
Whether you choose the NPS survey or not, it is important to make customer feedback a regular part of your business process, because the one thing everyone agrees brands will compete on in the future is customer service.
Also published on Medium.