Women In Business

Why improving your NPS is important

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Net Promoter Score is one way of determining how much your customers like you. It measures how likely they are to recommend doing business with you using a basic scale. Some NPS surveys also offer open format feedback after the single-question rating. What is a good NPS? How can you improve your NPS? Is it worth the effort?

How you get an NPS

After your customers make a purchase or interact with your reps, they’re offered the opportunity to respond to a simple survey question: “How likely are you to recommend This Business?” They’ll choose a number on a scale to show how likely or unlikely they are to tell others about your business. The NPS itself is the percentage of low ratings subtracted from the percentage of high ratings. Those that are neutral don’t factor in, though you’ll still get feedback from them.

What your NPS says about you

The number is helpful because it can be tracked over time. As you make changes to your products or services, you can measure accompanying changes in your NPS and monitor customer feedback to see how your changes are being received. NPS is based on a survey, so respondents are self-reporting leaving their rating vulnerable to emotional influence, such as having a bad day or being in a rush to respond. However, the simplicity of the rating scale and brevity of the survey counters most of the pitfalls of surveying customers. The open feedback is where you’ll gain the most insight into specific rants or raves about your brand, products, and services, by asking customers to pontificate on why they would recommend your business, they’re given the ability to say exactly what they need you to hear.

Improving your NPS

Your NPS is a little low, should you try to improve it? Does it matter that much? Yes. All the feedback and survey data in the world is useless if you don’t use it to improve your business.

When you’re looking for the big picture of customer satisfaction with your biz, it’s certainly important to include data, such as customer interactions via social media. The truth is, your NPS is only as useful as you make it. Customer feedback is vital to making positive changes in businesses of every size. Use it to effect changes that improve customer relationships and your NPS will improve as a result — not the other way around.

  • Respond – If you can use your customer surveys to start a dialogue and “close the loop” with customers who have unresolved issues, you’ll make huge strides in improving customer satisfaction. Reach out to detractors even if they don’t take the time to leave feedback.
  • Court Your Passives – Those customers who don’t love you or hate you are probably rating your a six or seven, not leaving any feedback, and never giving you another thought. This is your opportunity to make them promoters by reaching out with special deals, explanation of improvements or changes you’ve made, or details about your other products and services.
  • Address Trends – Have you noticed that customers consistently complain about their interactions with you via Twitter or those who purchased a certain product have the same problem with it across the board? Now is the time to address those complaint trends, then reach out to let them know you’ve improved.
  • Don’t Forget About Promoters – It’s wrong to assume that customers who love you now always will. Respond to their feedback by marketing to their favorites and building on their loyalty. Offering loyalty rewards or other special offers for those promoters, especially linked to social media campaigns, are great ways to build on a good relationship.
  • Skip the Numbers Game – Remember your NPS is important, but focusing too much on the number misses the point. Your score helps you track changes in overall impression of your business, while feedback gives you the details on what you’re doing well and what needs tweaking.

Your NPS isn’t the beginning and end of measuring customer satisfaction, but it is a powerful tool you should be using. If you look at NPS data along with other important data, such as social interactions, brand mentions, and sales, you’ll gain a fuller picture of your customer relationships.

About Megan Totka

Megan Totka is the Chief Editor for ChamberofCommerce.com. ChamberofCommerce.com helps small businesses grow their business on the web and facilitates connectivity between local businesses and more than 7,000 Chambers of Commerce worldwide. She specializes on the topic of small business tips and resources and business news. Megan has several years of experience on the topics of small business marketing, copywriting, SEO, online conversions and social media. Megan spends much of her time establishing new relationships for ChamberofCommerce.com, publishing weekly newsletters educating small business on the importance of web presence, and contributing to a number of publications on the web.

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