How Companies Can Use Net Promoter Score to Its Fullest Potential
Interested in studying your customer demographics so you can improve the quality of products, increase customer delight, and ultimately accelerate growth? It’s time to deploy an effective Net Promoter Score (NPS) strategy.
Developed by Fred Reichheld, Bain & Company, NPS helps organizations calculate customers’ perception of the brand. It provides a stronger idea of how your brand is perceived by your target audience. If the calculated score is high, your customers are happy and satisfied, and if the score is low, your customers are likely to be unhappy with your brand. So, customer’s delight and loyalty are directly proportional to NPS.
In other words, NPS is a trusted measure of customer loyalty and delight. It helps companies quantify customer sentiment towards products and services. Companies can use this score as feedback to identify their strengths and weaknesses.
It’s a known fact that a lot of organizations measure NPS, but few understand how to use it to its fullest potential. Unlike conventional surveys, one cannot benefit from simply crossing their arms and waiting for the results to roll in. For gaining valuable insights, the survey process must be strategic. Further, NPS needs to be integrated with all enterprise’s brand data for improved customer intelligence.
Let us find how companies can use NPS data to keep tabs on various stages of the customer lifecycle by integrating it with CRM.
NPS and Its Impact
The objective of the NPS survey is to evaluate your business/brand quality on a scale of 1 to 10. The generated score can be used as a baseline for customer sentiment. NPS groupings that include promoters, detractors, and passives help you conduct a detailed analysis to know what customers feel about your business. By asking strategic questions such as “how fast is our onboarding process” or “what it’s like to associate with our business”, you can add value and transparency to initiatives.
Most companies gather data from the newest customers. But, for better results, companies need to survey every customer segment. This helps companies compare success at various stages and find flaws if any.
Though NPS is an easy tool to carry out quantitative analysis, it is slightly incomplete. NPS, when coupled with feedback, can have a significant impact. A follow-up question can be used to understand the reasons for the rating. This approach is called closing the loop. It is done by asking a follow-up question, “What is the reason for your answer”. This question allows you to interpret the reading properly.
When you analyze the results and close the feedback loop, you’ll be able to generate revenue, alleviate churn, and improve customer experience. Though NPS plays a significant role in helping companies map a spectacular journey for their customers, its impact remains restricted if it is not integrated. Let us find how.
NPS and Integration
If you want to use NPS effectively, you need to take one extra step: integrate NPS with your CRM.
With the help of robust data integration platforms, you can integrate NPS data with your CRM to transform this score into a dynamic indicator of customer health. You can gain a 360-degree customer view through this Voice of Customer (VoC) program. By integrating NPS data into your CRM data, one can keep a close track on promoters, detractors, and passives alongside standard customer data like opportunities, products, and support cases. Thus, your management team can have access to a holistic view of customer health.
Understanding the nitty-gritty of customer experience allow companies understand their customers better so they can deliver a better one tomorrow. By gathering data from the survey and integrating it with CRM, companies can not only chart customer loyalty and recognize weak spots but also make more customer-conscious decisions that drive growth and productivity.