MarTech Primer: What is Net Promoter Score
Net Promoter Score, or NPS, measures customer experience and predicts business growth. A core metric to measure customer experience management programs, it has transformed the ways of doing business across the globe. The score ranges from -100 to 100; this index measures if customers are willing to recommend business products or services. It tracks the satisfaction levels and customer’s brand loyalty.
What Is a Good NPS?
Global standards maintain an NPS score of 0 and above is ‘Good’, 50+ is termed as ‘Excellent’ and 70 or above is deemed ‘World Class’. Globally, any NPS score of 0 and above implies that your business has a majority of loyal customers.
Steps to Improve your Net Promoter Score
1. Customer Response:
Do you respond to your customers quickly? Transparency in communication develops a healthy relationship with customers. Operations will be smoother when customers see you understand their problems and offer a solution readily. Respond to customer feedback appropriately. Ignoring customer feedback is the quickest way to lose them. Engaging with passives and detractors actively will help you build loyalty.
2. Engage With Promoters:
Promoters are a valuable asset to your business. They offer great insights like what things you did right which helped you earn their loyalty. Seek their advice if you should change your approach. Give them a voice and work on their recommendations.
3. Understand Your Detractors:
A business has much scope of improvement, regardless of which stage of the lifecycle it achieves. Continuous improvement is effective. Detractors can tell what is going wrong. Additionally, solving their problems may have a chance of acquiring new promoters. Treat criticism with an open mind as it is a good learning experience to save future customer-related issues. Take that extra mile to deal with detractors amicably.
4. Consistent Delivery:
Consistency is key to success for modern business. Aim to deliver customer delight in each experience. Fast, reliable and transparent services will cement customer loyalty even without your knowledge. Ensure to deliver the same experience each time the customer comes to you.
Role of NPS in B2B Sales and Marketing
Customer loyalty is classified into promoters, passives, and detractors. On a scale of 1 to 10, customers rate the likeliness of recommending products/services to their family, friends, and acquaintances. Promoters give a rating of 8 or above, passives 7 or 8 and detractors give a rating of 6 and below.
Your business will benefit if you garner more promoters than detractors. Promoters are not much concerned with the price of the offering. A high retention rate of promoters will yield greater margins and higher business growth. As NPS uses a standard score, you may compare it with other competitors.
In this fast-paced and evolving business world, having a strong base of loyal customers is essential to stay ahead of the competition. Are you ready to improve your NPS?