The Net Promoter Score as the indicator for customer satisfaction and recommendations
The Net Promoter Score is a measurable figure which offers information about customer referral behaviour. It is important to know if your customers recommend your services and in particular the reason why they do it to make the right decisions in the day-to-day business, develop your brand and build a long term loyal customer base.
Customers who visit a restaurant or shop based on recommendations are coming with a positive attitude because of recommendations by trustworthy people like friends, colleagues and acquaintances. Besides the direct word of mouth recommendations from the circle of friends, an increasing number of customers are trusting online reviews for example from Facebook, Google+, Yelp or other rating portals. The reach of one single person can have a huge effect on your success.
Control of customer satisfaction with the Voice of the Customer
If it is applied correctly, the Net Promoter Score helps you to better understand your customers and react immediately in the day-to-day business. Apart from the classical customer review (i.e. through 5 stars or grading system), this useful indicator shows the actual need for action.
By identifying critics, you can, for instance, directly contact them through your customer service or store manager and ask them about the reason for the negative review to quickly fix issues. Constructive criticism gives you the chance to improve your service and reduce the number of critics permanently.
Contact your promoters and invite them to leave reviews on social media and relevant platforms. By doing that, you have started your word of mouth campaign and a permanently low price and effective marketing.
How does Net Promoter Score work?
The Net Promoter Score supports you with measuring the degree of customer recommendation and analyzing it quickly and easily. The basic structure of NPS is simple.
In the satisfaction survey customers rate the question: “How likely will you recommend us to your friends, colleagues or acquaintances?” on the scale from 0 to 10. Zero stands for “highly unlikely” and 10 for “very likely”. Depending on the customer’s choice, they are divided into 3 categories.
Customers who respond with 9 or 10 are promoters who like to recommend you to others.
Customers who chose 7 or 8 are neutrals (indecisive), that means customers who are feeling indecisive about your company and service and don’t necessarily want to recommend you but at the same time don’t speak negatively about your business.
Customers who respond with 0 to 6 are called critics. Those are customers who are not satisfied with your service and could even share negative experiences with friends, colleagues and acquaintances, hence, deter potential customers.
Depending on how your customers respond, the overall Net Promoter Score ranges from -100 (all customers are unsatisfied with your service) and +100 (all customers are happy to recommend your business).
How do I measure the Net Promoter Score?
Feedbackstr is a Feedback Management System which can measure the Net Promoter Score. With Feedbackstr you are after the registration in no time ready to survey your customers through different communication channels and know if they would like to recommend your company.
Implement multichannel-surveys at your Point of Sale for example through feedback terminals, short links and QR-codes on posters (or other print media), references to your website or support-hotline. The evaluation of your results of the NPS runs fully automatically and in real-time with Feedbackstr. As soon as feedback is received, you and your team will be informed and you can assign tasks directly via the integrated ticket system and react immediately to your customers.
What is a Net Promoter System?
A Net Promoter System integrates the survey of the Net Promoter Score and the resulting measures directly into your processes and daily business. Unlike annual surveys, you provide a continuous Feedback Management System for your customers. They have the opportunity to submit feedback easily and quickly at any time and rate your company through reviews and Net Promoter Score as well as helpful comments right in the moment of truth.
By mapping your organizational structure in a tailor-made RTPM Suite, you can use targeted quality monitoring to determine the referral rate per branch, department or organization. Apart from that, a Net Promoter System integrates all touchpoints with your customers for instance point of sale, service emails, call-centre, websites, social networks, apps and thus provides a suitable platform to ensure communication with your customers across all channels.
Receiving daily feedback allows you to encourage your entire team in the Net Promoter System, responding quickly to customer reviews and comments across your entire organization to continually increasing the referral rate.