The Net Promoter Score (NPS), combined with a powerful online dashboard, allows you be the fly on the wall as you’ll get a critical insight into what your customers think of your brand.
With this powerful knowledge, you can, among other things, understand how you are performing and how well you are retaining your customers and how loyal they are likely to be to your business.
If you've wondered how to increase customer retention, NPS can help you attain your business goals, here we explain how NPS can help do just that.
Often, NPS is a reality check for companies, as it exposes how their business is performing. It’s also an indicator of future growth as you are in effect measuring your customer satisfaction levels (the potential for repeat business—customer acquisition—and word-of-mouth through positive referrals). If you feel that you’re missing something when it comes to your customer retention, NPS might be just for you.
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With the NPS methodology, you can identify and personally contact your "most at risk" customers, those who are most likely to stop using your products or services, and save them as customers by resolving the situation quickly. In addition, you'll get a valuable insight into why they'd want to leave. With that knowledge you will immediately know what you need to improve on to retain your existing customers, and acquire new ones.
To actually put a concrete number on how loyal your customer base is, many companies today across the globe use the Net Promoter Score as an established method for measuring loyalty over time because it’s not only easy to use but also has a direct connection to profitability.
You're essentially measuring your customer satisfaction and the likelihood of your current customers to recommend your business, thereby you're able to measure your customer loyalty and retention rates.
Not convinced? The following is a statistic that we love to use to describe this. It has been demonstrated that companies with the top NPS scores in their industry outgrow their companies by 20 per cent.1
Getting strategic, actionable insights will mean that your customer feedback survey will pay for itself in the long run, and you’ll able to make solid business decisions based on the insights provided. Check out our case study on howWesfarmers made customer experience work for them.
When you know how many of your customers are unhappy, and what you need to know to keep them loyal, you are on your way to increasing your customer acquisition rates. Basically, keeping your existing customers loyal is more cost efficient than constantly trying to acquire new customers. The stats say it all: a 5 per cent lift in customer retention will actually result in an increase in profit in upwards of 30 per cent.1 Having invested into your CEM solution will pay for itself when considering the lifetime value of saved customers.
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You may be quite familiar with NPS but just in case you're not, here's a brief rundown of what it is and why it's so valuable for businesses all over the world.
Using NPS is an ideal way to manage your retention levels as it enables you to develop a long-term relationship with your customers that is authentic and real. The insights NPS gives you are valuable and actionable. By using NPS, knowledge really is your best asset.
The magic lies in how you actually leverage the information that transpires, and how you follow up with the respondents and thereafter engage them.
It’s a score that provides a trusted perspective of your position in relation to other companies and industries, it’s easy to understand and means you don’t have to analyse the results of a large and complex survey.
Want to learn the top industry secrets to customer acquisition and retention? Download our ebook How to acquire new customers and retain them below: