Today, customer sentiments shape a business’s future and its growth projection. If you don’t know what your customers are thinking about you, it’s tough to grow.
But how will you know what’s going on in the minds of your customers? NPS is the key that you need to use to unlock these insights. From customer satisfaction and dissatisfaction to their feedback and pain points, NPS surveys directly or indirectly help you know all these.
So, in today’s blog, we will be talking about the 6 secret ways of using the Net Promoter Score program to take your business and its revenue to the next level. Furthermore, you will also be able to learn about many other customer feedback metrics and their role in building a brand.
Let’s first get started with the basics!
What is NPS?
It is a metric or score that measures the number of promoters and detractors you have. However, what it tells you about your business is more than that. You can know about the likelihood of the customers recommending you to others in the first place. Then, you can also gauge aspects like customer loyalty, satisfaction, and the likelihood of customers to churn.
This score contains a question you send to the customers or prospects (respondents). The question goes like this: “On a scale from 0 – 10, how likely will you recommend us to your friends and colleagues?”. The respondent will choose any number between 1 and 10, where 1 is very unlikely and 10 is most likely. Based on these ratings, a score is derived between -100 to 100.
6 Ways to Use Net Promoter Score in Driving a Business Growth
Understand the Prospect’s Expectation
A reason why your potential customers aren’t converting can be that their expectations are different from your existing customers. So, you can’t just keep focusing on what you have; you also need to focus and make changes according to what you want to have (the prospects).
Net promoter score plays an important role in helping you determine your potential customers’ expectations. But how? The steps involved aren’t the same as your traditional NPS.
You will first need to separate a distinct survey program for your prospects. It should have different questions focusing on their expectations from your brand. This is surely different from asking about their chances of recommending you. Moreover, that’s what makes all the difference. By acting on the results, you’ll be able to turn your prospects into your customers better and easier.
Retaining Low-Rating Customers
As you know, these surveys help you to know about your promoters, detractors, and passive customers. Now, a common mistake that many businesses make is considering detractors as the participants in the churn rate from the beginning. But that’s not how you should react.
The other and also the right way to react is to understand and find what annoys your customers to make them detractors. This way, you’ll be able to make changes to your product/service or even to your operations like delivery and customer service.
Transform Passive Leads into Advocates
Let’s now talk about the type of customers that businesses mostly overlook: the passive customers. Now you may get confused about who they are. Briefly explaining, they are the customers who respond with 7 or 8 to the conducted survey. The reason why businesses often overlook them is because there’s barely any strategy that is created to target them. Hence, the business either employs a promoter strategy or a detractor one or both but never targets the passives.
With these NPS surveys, you can identify the passives and stop them from becoming detractors. Moreover, with the right actions, like solving their issues or personalizing your efforts to their needs, you can push them to become promoters.
Hold onto Your Top Customers (Promoters)
While it’s crucial to give special attention to your detractors, your promoters are equally important and deserve your attention as well. But the way you can act on your promoters with NPS is different. Promoters come with various growth opportunities for your business like cross-selling and up-selling. Hence you should identify your promoters with the help of a survey and target them with these tactics.
But pushing your growth through promoters is only possible if you treat and reward them well. With referral and loyalty programs you can reward your promoters and retain them. In exchange, you’ll get increased revenue and new prospects at a much lower expense by encouraging them to become a word of mouth for you.
Enhance Your Value Proposition
The value proposition is something that’s hard for brands to realize that they are not offering enough. But even if they have a great value proposition sometimes the presentation is done the wrong way. The features or factors that the customer may really admire are left unrepresented while other features are shouted out loud. But with surveys, you can gather data that is needed to know about the value proposition stats. It will help you craft a customer-centric value proposition.
Use Net Promoter Score to Build Customer Loyalty
Customer loyalty for a brand is a cherry on top. But turning your customers into loyal customers is a task that should be done precisely. You can’t put a lot of resources just to make a customer happy and loyal. There are two drawbacks to doing so. Firstly, it takes a lot of resources like giving offers, rewards and discounts. Secondly, such loyal customers may not be retained once you stop offering them these benefits.
The better way to boost it is to go data-driven. You can use NPS tools like SurveyCXM, which gives you access to an insightful dashboard. From live NPS and promoters/detractors’ percentages to other customer feedback tools, it’s a complete solution to get an overview of your business in terms of customer satisfaction. Hence you will be able to enhance loyal customers that will retain since it will be based on changes and needs that really matter.
Why Choose Customer Feedback Metrics?
Customer feedback metrics are crucial to businesses that care about their customers and satisfaction. These metrics help you understand the customers’ POV of your brand.
Metrics like NPS, customer satisfaction (CSAT), CES, CCR, and more to contribute to a better understanding of your business concerning the consumers. They help to learn about the data-driven changes and improvements needed in a business. Hence, businesses should employ a program having all these customer feedback metrics onboard.
Final Verdict
Net Promoter Score is undoubtedly an essential customer feedback metric that can help businesses drive more revenue. While you may be used to thinking that it’s only about customers and their satisfaction, now you know how it can positively impact the business’s overall performance. So, if you want to change according to your customer’s needs, you should invest in NPS surveys immediately.
