If you’re using Net Promoter Score to gauge customer loyalty, this blog post shares ways to help you get more from your NPS score.
Companies use Net Promoter Score as a metric to evaluate customer satisfaction and loyalty. The NPS score provides companies with a clarification on just how loyal their customers really are. The score often becomes the focus… how to increase the score with the intent of increasing loyalty.
In order to get more from your NPS score, it’s important to connect customer behaviors with the business outcomes you desire. Promoters and Detractors exhibit dramatically different behaviors and produce dramatically different economic results.
The key is in how this information is utilized…
- Promoter Behaviors…
Between 80 to 90% of positive referrals come from Promoters… they love the brand and are typically less price sensitive because they believe they are getting a good value. They also increase their purchases more rapidly because they want to consolidate their purchases with their favorite supplier. Leveraging these relationships will help you grow your revenue and profit.
- Detractor Behaviors …
Detractors are more price sensitive and typically consume more of a company’s resources. They defect at higher rates and have shorter, less profitable relationships with companies. These may be customers you end up firing because of low profitability and potential.
It’s not just enough to collect data and get a score. Understanding how to most effectively use the data to generate new revenue and improve operational efficiencies is the key to getting more from your NPS score.
So, use these tips to make more money from your customers… and make them happier in the process!
And if you’d like some help, please reach out at (216)-867-1165); we can help you get started.
