Does your organization aim to deliver amazing customer experience and build strong customer relationships? Net Promoter Score (NPS) is a crucial business metric that not only provides you an insight into your customer’s experience but also highlights the operational vulnerabilities in your organization. NPS is used by brands across the world and provides an accurate measure of customer satisfaction when used in conjugation with an insight expert.
How to Calculate your Net Promoter Score
NPS is a simple tool wherein a customer has to rate a scale from zero to 10 based on their experience with your brand. If the customers rate the brand anywhere between zero to six, they are labeled as ‘detractors’ whereas customers who rate the brand a nine or 10 get the status of. ‘promoters’ Customers who provide a rating of seven or eight are labeled as ‘passives’. NPS is then calculated by subtracting the net promoters from the net detractors.
Improving your NPS is instrumental in increasing customer loyalty and improving customer acquisition. Let’s take a look at some simple and yet effective tips on how to improve your brand’s NPS.
Follow-Up with Your Customers
It is important to delve deeper to know why the customer has provided a particular score. So, follow-up with the customer promptly by using survey tools such as e-mails or direct interviews and get detailed feedback. This practice is referred to as closing the loop and not only shows your dedication to customer experience but also helps solve the customer’s problems and provides you an insight into the issues that affect customer loyalty.
Showing your customers that you care goes a long way in building a relationship of trust. For instance, if a detractor visits you again, make sure that you reach out to them and address their grievances. In instances where you are not able to fix their problem, it is important to make them understand the reason why it cannot be solved immediately and assure them that you are trying your best to improve the customer’s experience.
Involve all the Departments
The customer support teams are not the only ones responsible for customer satisfaction but the entire organization is accountable. For instance, if a salesperson does not return a call, your NPS gets affected and this is not the fault of the customer support team. So, you should ensure that the different departments work together to enhance the customer experience. For this to happen, make your staff understand what is NPS, how it can be measured and how to improve NPS. Also, the employees should be aware of how NPS plays a crucial role in your organization’s annual reviews. They should aim to convert customers into loyal promoters of your brand.
Focus on the Detractors
A study has indicated that replying to customer’s reviews results in better ratings. So, if a detractor leaves a negative review regarding your product or service, you should respond in a timely manner. Your response should include an apology and the steps that you will be taking to address the customer’s complaint so that future problems can be avoided. Detractors help you in understanding the reason why your product or service made them unhappy. They provide valuable insights that help you improve customer experience.
Leverage your Promoters
Recommendations are considered as the best way to promote your brand. Ask your customers and encourage them to give you positive reviews on Facebook, Twitter, and other social media platforms as this is a great way to spread the word. You can also encourage them to share their story in the form of a testimonial. It is not easy to make your unenthusiastic customers share their positive experiences with your brand. So, to make the task easy you can offer them discounts or other incentives for their valuable feedback. In fact, many of your ‘passive’ customers can become ‘promoters’ when you offer them incentives to share their stories. This will help you build a strong online community with many people promoting your products and services.
Also, it is important to engage with your customers online, so you should have skilled customer service representatives who respond timely and make your customers happy about sharing their stories online.
Conduct a Root Cause Analysis
Your organization’s management team should look deeply into the feedback provided by the customers. Zero in on the top five problems that your detractors and passives encountered. Once you have the information on repetitive complaints and the corresponding customer remarks, you should conduct a root cause analysis. Root cause analysis (RCA) is a systematic process that focuses on identifying the “root causes” of problems and helps in identifying an approach for responding to these problems.
The common problems faced by your customers can be grouped into different categories for improvement. You can prioritize an issue depending upon how many times it is mentioned in these categories. Once all the problems have been grouped, a Pareto chart can be used to clearly depict the issues in the order of priority. A Pareto chart is a graph used to highlight the frequency and impact of defects. It gives a clear picture of the different problem areas and once you have these highlighted, it is easy to fix them.
Train Your Staff
Once you get the feedback from open-ended surveys and you are done with the root cause analysis, you have all the necessary information to improve your customer experience. For instance, your NPS survey reveals that customers are unhappy with the accounts department as they have been rude and unhelpful. Now you can focus on this feedback to train the employees in the respective department as this will avoid further casualties and lead to enhanced customer experience. Ensure that all your employees know how to improve your NPS and are skilled to handle customer’s dissatisfaction.
Monitor Your Score Routinely
In today’s world, the customer is constantly bombarded with information about different brands and their loyalty can be easily lost with a small mistake from your end. It is important to regularly check your NPS so that you are constantly aware of the customer’s wants and needs. Frequently implementing customer feedback plays a crucial role in maintaining brand loyalty as it shows your commitment to customer experience.
NPS is an important part of the larger gamut of Customer Experience Management. Knowing how to improve NPS can provide valuable insights so that you can come up with effective strategies to enhance the customer experience. NPS is a crucial metric that helps in identifying your organization’s problem areas so that you can focus on increased customer satisfaction and brand loyalty.