Unlock Common Methods to Improve Net Promoter Score

Net Promoter Score metric has become the leading choice of weapon for enterprises across the world to understand the psyche of their customers. In doing so, these firms conduct a survey that poses a simple question to capture the mindset of your customers. As they add a follow-up question to that, they get a deeper understanding of what customers think about you. So, Net Promoter Score can be used to gauge customer behavior. For better understanding, let's delve into details.

Understanding Net Promoter Score

NPS is a simple, easy-to-compare metric system that calculates a score on the basis of a simple question, “How likely are you to recommend our company to a friend or colleague”. To calculate this score, a survey is carried out. The survey conducted to garner customer responses can be of two types:

Relationship Surveys: This survey is conducted to evaluate customers’ loyalty and their overall experience across all touchpoints. These surveys are conducted at regular intervals for measuring customer behavior as well as customer advocacy.

Transactional Surveys: This survey is meant to investigate customer experience during a particular interaction or transaction. Transactional surveys are majorly used to evaluate customers’ outlook about the brand.

Once the survey is done, your respondents can be divided into 3 categories:

Promoters: These are those customers who responded with a score of either 9 or 10. Promoters are completely satisfied with the brand or service and offer a positive word of mouth or recommendation.

Passives: These are those customers who are reasonably satisfied and responded with a score of either 7 or 8. However, passives are not happy enough, and likely to switch sides.

Detractors: These are those customers who ain’t happy and responded with a score between 0 to 6. As a matter of fact, they can even discourage others with negative word-of-mouth recommendations.

Finally, NPS can be calculated by subtracting promoter percentage with the detractor percentage

How to Improve Net Promoter Score

As per a Harvard Review Study, 48% of customers are likely to complain about the negative experience they had with brands to 10 or more people. For companies to experience constant growth, companies need to deal with these customers, ones who feel wronged. In doing so, they need to improve their Net Promoter Score or else the entire exercise is an experiment in futility.

Companies can use the following two methods to improve their Net Promoter Score:

• Close the Loop with Your Customers

For a multitude of companies, customer data onboarding is a mammoth task that takes a lot of time and causes unnecessary delays. Lengthy and labor-intensive onboarding process causes disruption that proves to be a roadblock in offering delightful experiences to customers. This, in turn, impacts Net Promoter score. In the absence of the right technological solutions, the impact can be bigger. The role of a modern integration platform comes into play here. Companies can rely on integration solutions to streamline their onboarding regime, making it faster by up to 80%.

In addition, companies can use methods such as direct interviews, follow-up emails, etc., gather even more feedback to target the company’s efforts in a customer-centric direction. This helps companies close the loop with customers to find deeper meaning and reasons behind the score. For example, companies need to take qualitative action whenever a detractor shows up. They can rely on an expert manager or employee to contact the customer and take their complaints seriously. The feedback offered by the customer can be of great use for companies as they can use it to improve the quality of the product.

• Deliver Connected Brand Experience through Customer Self-Service

Customer not only interacts with the brand but a different set of people in a company. If they don’t get a connected experience that thrives on collaboration, then they will have a poor NPS score. This problem can be resolved by deploying an integrated solution that unifies customer data across departments, places them into a single spot, and makes it available for action so that customers can savor a delightful experience.

Enterprises can also use online self-service portals to allow customers resolve issues by themselves.

Net Promoter Score is a highly reliable metric used by many companies today. It can shape a companies’ value and future, making them easier to do business with. By using the insights offered by this score, organizations can not only satisfy existing clients but also attract new ones.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes