Top Tips To Improve Your NPS
After a global pandemic turned our lives upside down for the last 12 months, it has been sink or swim for many companies out there. So, how can you manage to stay afloat? Two words: customer retention. With 63% of consumers stating they would stop buying a product or a service if they have an unsatisfactory experience, what can you do to stop your churn? Focus on your NPS!
What is NPS and why is it important?
Although it feels like the Net Promoter Score (NPS) has been around forever, it was actually created in 1993 by Fred Reichheld and adopted 10 years later by Bain & Company as a way to measure customer experience and predict growth.
Calculating your NPS is simple. You simply ask your customer ‘how likely are you to recommend company/product/service to your friends or colleagues?’ Then they rate their answer from 0 (not at all likely) to 10 (extremely likely). Responses are then divided into 3 distinct groups:
- 0 – 6 Detractors: These people are likely to actively discourage their friends or colleagues from choosing you, ultimately damaging your brand.
- 7 – 8 Passives: Customers that are … meh! They won’t actively disparage or recommend you.
- 9 – 10 Promoters: Absolute rockstars who are highly likely to recommend you. These people are crucial to your business as 92% of people trust recommendations from their friends or family more than any other form of advertising.
Why should you care about your NPS? The easy answer is that it’s a simple way to measure satisfaction with your company. If your NPS is low, then you can see where you need to improve. This will ultimately create more promoters, and reduce the number of detractors (the NPS dream!) One last fun fact to convince you? A London School of Economics study shows that an NPS increase of 7% means an extra 1% growth in revenue. So, yes… you should definitely care about your score!
5 tips to send your NPS sky high!
1) Re-phrase your follow up question
First of all, make sure that you have a follow-up question and aren’t simply asking for the NPS rating. Most companies have a free text field after the rating where they ask customers to ‘leave any extra comments here’. This question is way too vague and won’t lead to any meaningful outcome. Change it to ‘How can we do better?’ This will provide more constructive feedback that you can ultimately action.
2) Close the loop
Concentrate on your detractors. Continue the dialogue with them to find out exactly why they won’t recommend you. You can do this anyway you like, but preferably through their preferred channel. If you can fix their situation, great! If you can’t, take the time to explain your reasons why. They will appreciate it. If your number of passives is significant (i.e similar to your number of detractors), you can also include them in closing the loop.
3) Examine your customer journey
Seeing the overall NPS and reading the comments are really helpful. But you should also dig deeper into the customer journey to see where things aren’t going according to plan. You can identify the journeys that drive the most detractors and promoters. Map them out in detail, allowing you to identify pain-points and see what is working well. By creating new strategies to deal with these areas, in the long-term you will see a decrease in detractor numbers.
4) Involve your whole team
All too often, NPS remains the responsibility of the customer service team. Every single employee should feel a sense of ownership, otherwise, how will things improve? Let’s say you work for a food delivery company and a common theme amongst your detractors is the time delay from ordering to receiving the email confirmation. If your email marketing team does not feel invested in the NPS, why would they prioritise fixing this? By ensuring that all of your staff feel responsible for the score, you will see more inter-departmental collaboration and quicker turnarounds on crucial topics.
5) Make providing feedback as easy as possible
Did you know that a third of consumers say that they are only occasionally given the opportunity to provide feedback? The same Microsoft study shows that 90% want to give feedback so let’s make it as easy as possible! If your customer sees that there is a lot of effort involved, they won’t do it. This will leave your NPS in the hands of passionate detractors and promoters…and we don’t want that! Stick with the 2 questions discussed above and offer different ways to respond. Providing both written and voice alternatives will enable you to increase the number of responses and gather more vital feedback.
We hope that we have given you some actionable tips to improve your NPS and gain that extra revenue. Remember, simply asking your customers the question won’t do anything. The value lies in your analysis, and what you decide to do with the data.
By making your NPS a priority, you will not only increase customer satisfaction but also gain some great insights as to how you can improve your product or service offering. That’s a win-win!
Want to see how we can help you boost your NPS? Scan our QR code and let’s chat!