Have you looked at different types of customer satisfaction measurements and confused as to which one to go with? There are lots of different types of tools and measures out there, so how can you be certain that you choose the right one?
Here we list the top five reasons you can't live without the Net Promoter Score (NPS), it's a great measure to determine how competitive your business is.
Why you need Net Promoter Score now
1. Measure customer loyalty
If a customer is happy with your products and services, they’re more likely to stay your loyal customer for the long term. NPS is used globally as an important business metric to measure customer loyalty and the sentiment of your reputation. It basically establishes the likelihood of a customer to recommend your product or service to another person. NPS is an excellent measure of customer satisfaction and can be used as a KPI for your whole business, as it will measure how many of your customers will recommend your business to others.
One of the biggest benefits is to be able to spot the customers who are “most-at-risk” of leaving your business, and be able to contact them to know why they would leave you and try to resolve the situation ASAP. You’ll be able to identify your “detractors”, or your most-at-risk customers, and save them from leaving you - thereby protecting your revenue.
Related content: How do you calculate a Net Promoter Score?
2. Measure your business performance and potential business growth
You’ll be able to measure your performance through the “true measure” i.e. your customers' actual perception, through their honest feedback.
Higher Net Promoter Scores tend to indicate a healthier business while lower scores can be an early red flag to understand potential issues such as customer loyalty.
NPS can expose how your customer experience is working (or the fact that it isn’t) It’s also an indicator for future growth as you are measuring the potential for repeat business and word-of-mouth, through customer referrals.
It’s not just a number - NPS is a comprehensive system that can massively impact your business growth. However - it needs to be implemented in the right way, but when it is, oh that’s when the magic happens. In fact, businesses with the top NPS scores in their industry outgrow their companies by 20%.1
3. Know how to improve your business
With NPS you know exactly what you need to do to improve your business, you’ll have all of this valuable knowledge right at your fingertips.
With NPS, you’ll get a critical insight into what your customers think of you, what you’re doing well and what you could improve on. You’ll get honest feedback straight from where it counts the most.
4. Get more referrals
With NPS you can identify your promoters, the ones who love your business and are willing to promote it. By using this knowledge, you can activate them to increase your positive word of mouth and grow your business by referrals.
When someone scores you a 9 or 10, it’s the perfect opportunity to capitalise on getting a testimonial or prompt them to share on social media. Don’t have the time? Online customer experience platforms, such as Customer Monitor, can automatically do this for you. You should thank your customers for their feedback and offer them some pre-written content that they can easily share on Twitter or Facebook and ask for a testimonial. They’ve already said they will promote your business in your survey, so you’re just making it easy for them to do so.
5. Benchmark against your competitors
By using NPS, you’re using a globally recognised system, which makes it easier for you to benchmark against competitors in your industry and track your progress over time. It is a standard measurement used by companies all over the world, making it easy for you to benchmark your brand within your particular industry. You’ll know what your NPS benchmark score is for your industry and measure how you’re performing against it.
Want to know more about how to leverage NPS? Download our ebook for free below!