30 April, 2018
This is an era of the customer experience and the customer relationship. Nowadays customers are not only purchasing the products, they are purchasing a product experience they carry with.And this experience makes perspective in customers mind for your brand or product. A good product experience creates customer's loyalty towards company's product and services. To gauge this customer loyalty fortune 1000 companies are famously using net promoter score(NPS).
What is Net Promoter Score?
Net Promoter Score (NPS) is a tool which is popularly being adapted to estimate the loyalty of a company's customer relationships.
The Net Promoter Score is standard index range from -100 to 100 used to measures the customer's willingness to recommend a company’s products or services to their familiars or relatives. the score is used as a litmus for assessing the customer’s overall experience satisfaction with a company’s product or service and the customer’s loyalty to the brand.
Net Promoter Score Measures customer experience and predicts business growth based on the customer relationship and loyalty. This established index changed the business world moreover now gives the core estimation for consumer experience management programs around the world.
So, How to Calculate the Net Promoter Score?
Customers are studied by one single question. They are asked to consider the company brand or service at 0-10 point scale the probability of advising the company or brand to their familiars. on a scale of 0 to 10, how likely are you(customer) to endorse company’s product or service to a familiar or an associate?” Based on their rating, respondents are classified into 3 sections like 1.detractors 2. Passives and 3.promoters.
- Promoters: Who scores 9-10 are faithful supporters they, will keep buying and refer others, ultimately feeding growth.
- Passives: Who scores 7-8 are happy but quiet customers, they are vulnerable to offers from other competitors.
- Detractors: Who scores 0-6 are not happy customers, they can damage your product or brand and deter growth through negative word-of-mouth.
The NPS is calculated by subtracting the portion of consumers who are detractors from the portion of promoters. produced is a number between -100 and 100 called the Net Promoter Score. At one point of the scale, all of the consumers gave a score less or equal to 6, this would lead to an NPS of -100. On the other point of the scale, if all of the consumers were responding to survey question by giving 9-10, then the overall NPS would be counted as 100.
How this score benefit your organization?
this score is quite simple and easy to understand but it can make a huge difference in your organizational growth. NPS can be used as a motive for organizations to advance and to give the excellent customer experience achievable. its ultimate goal is to turn customers who were less satisfied or unhappy into promoters who will put the word out and allow for increased growth and revenue.
Doing well in Net Promoter Scores lead to indicate a better business while less Net Promoter Scores can be an initial warning to mine farther into possible customer satisfaction and loyalty issues.
the surveyed data requires being analyzed properly. The power of the Net Promoter Score is in its simplicity but unless a business investigates the data and find out the core problems of its detractors’ experiences or the factors of the success that directed simple customers into promoters, it will miss out on a recipe for future growth, profitability, and sustainability. For example, one is well attended by reading all the comments, tagging them, classifying them and then looking for patterns. It is paramount for a company’s leadership to seek out all the “why” behind the data and to accommodate and grow respectively.
And How we are doing it?
Our best practices for NPS will not only compute and analyze your company’s Net Promoter Score but will further provide you answers to the “why” behind the score. Our advanced analytics automatically analyzes exact feedback, and easily reveal and measures where your company performs well. moreover, we suggest, what needs to be improved. be it a technical issue, support issue, product issue or product cycle issue. all the guesswork Ridgeant takes out for you.
#ecommerce #business #customer #loyalty #nps
Blog written by: Kedar Kanziya