What is the Net Promoter Score (NPS)?
A Net Promoter Score (NPS) is an analysis to measure your customer experience metrics and the collective customer's remarks and evaluate how your business fares against the competitors. When appropriately utilized, NPS can help to increase revenue, improve customer retention rates, minimize risks and improve overall customer experience.
Determining a benchmark NPS score
1. Set a benchmark NPS: A benchmark net promoter score is a reference point to evaluate progress made and determine which steps yield better results. It gives the space to implement different business solutions and compare the performances for what works best.
2. Obtain customer feedbacks: A simple NPS survey would do the trick here. Whether through email or direct contact, asking the customers for their points of view about your product/service helps to measure your business performance. It also reveals what you are getting right and areas that require improvements. The best way to get effective feedback is by personalizing the process. Ask questions that trigger their unique experiences.
3. Acknowledge all feedbacks: Don't ignore feedback because it is negative. Rather, see customer feedback as an eye opener to possible areas that need fixing and improvements. Acknowledge feedback to let the customer know you've received them and assure to make appropriate implementations.
4. Research your competitors: Setting an industry-standard NPS baseline score is a strong performance metric to evaluate how you fare compared to the competitors.
You can also further understand the root cause of disparities between you and the competition. Check out what they are doing better and how it's done.
5. Differentiate your promoters and detractors: Depending on the feedback received, divide your customers into the detractors and the promoters. The former are those that are happy with your products/services, while the latter are those with some negative remarks.
What do you achieve with that?
It's simple. It helps you focus and work on how the detractors gradually become promoters.
1. Evaluating and monitoring NPS feedback: This point relates more to the negative NPS scores. It would help if you discovered why a customer left a negative remark and what was their exact challenge. For instance, processing eros during order payment. Identifying and resolving customer pain points is the right step to improve your NPS score.
2. Follow-up received feedbacks: Following up with promoters and detractors saves you some stress of determining additional details about received feedback. It also provides the avenue to fix broken business-customer interactions.
3. Prioritize improving the NPS score: Ensure the top managerial staff accepts the plan to improve your NPS score. The department heads need to lead the charge in investigating and implementing strategies that enhance the customer's experience.
4. Implementing your NPS improvement methods: Sensitizing the managerial heads is not enough. Also, see that every team member is involved and shares the company's NPS vision. Let your employees understand that their actions affect the customers and the significance of customer satisfaction.
5. Discuss internal team insights: Improving your NPS score is a team effort, not just one department's job. Therefore, encourage each department or team to share frequent insights and suggestions on achieving the overall NPS targets. Everyone must know their respective roles in their departments or teams.
6. Expanding throughout the business: The next point here is educating your staff on how to improve your Net Promoter Score. From the management to subordinates, individuals should be able to identify their contributions to achieving set NPS targets. Working as a group also increases the chances of winning.
7. Close the loop: Your different departments should have internal meetings to analyze NPS scores and agree on how to implement recommended changes. Individual members must evaluate themselves against the interpreted NPS metrics and implement a step-by-step feedback solution. It takes a collective effort of every department to close the loop on detractors and negative remarks.
8. Use automated software: Automating certain analytics and responses to the calculated NPS is an effective way to build the calculated scores. Core steps like listening, analysis and implementation can be automatically managed with appropriate tech. The selected tool uses the received NPS data to determine the best set of actions to effect changes. Not only is automation faster, but it is also more effective in resolving customer agitations. The automated software gives feedback and also predicts possible issues that might arise.
How to improve your NPS score
1. Interact with detractors: Responding to negative customer experiences is beyond interacting with the detractors. Businesses should investigate the root causes to offer tangible solutions. Customers love quick responses to their complaints, which can positively impact their trust in your business. Hence, employee empowerment should focus not only on requesting feedback but also on proactively resolving negative customer experiences.
2. Leverage promoters: Contacting them for feedback on what they love would help you maintain the great relationship you've established with them. You want to keep doing what keeps you over the competitors, and that's why promoters are important. Retaining such customers is the way to boost sales revenue.
3. Why improving your NPS should be a core part of your customer experience training. How to improve your NPS should be an integral part of your customer experience training. Your employees must understand the fundamentals of tracking customer feedback and using calculated NPS data to analyze customers' experience metrics.
Here is a summary of how to improve your NPS score:
1. Ensure your NPS improvement plan is understood from the management down to team members
2. Design a strategic action plan for responding to customer feedback and enhancing customer experience
3. Listen to customer pain points and analyze the root causes of their challenges
4. Promptly respond to received pain points while assuring the customer of your commitment to delivering the best service
5. Schedule continuous feedback to close the customer loop and stay aware of their expectations and needs
