At spaarks we strive to delight our customers. And right now we know that we are succeeding, our customers are indeed delighted with us. But how do we know that? In order to meet a goal it needs to be measurable. How do we quantify our customers’ delight? We use the Net Promoter Score℠.
Four reasons you should know your Net Promoter Score:
- Business growth
- Customer loyalty
- Actionable feedback
- It’s easy!
There is a growing field of evidence on the correlation between customer loyalty and business growth. Net Promoter Score (NPS®) is a simple and effective way of gauging customer happiness, and happy customers are loyal customers.
What’s the link between growth and Net Promoter Score?
- Net Promoter leaders grow at more than twice the rate of competitors
- Customer loyalty and happiness directly correlate with sales
- Net Promoter Score is a good indicator of potential future growth
- You are more likely to recommend a company to a friend or colleague if you are a loyal and delighted customer
It follows that the best way for a business to thrive is to wow its customers and they will become loyal promoters of the brand to others.
Using the NPS allows a business to be proactive as opposed to reactive. It’s great to get positive feedback and customer referrals are priceless. It’s even more important to get and act on any negative feedback from customers. Delighted customers might tell others and champion you, but upset customers will definitely tell people, and in this age of technology at our fingertips, potentially millions of them.
How do you get your NPS?
It’s one simple question “On a scale of 0-10, what is the likelihood that you would recommend (Company) to a friend or colleague?”. Answers are then used to calculate the Net Promoter Score.
- “Promoters” who give 9 or 10 are loyal advocates of the brand, they are “Delighted”.
- “Passives” who give 7 or 8 are tepid, not complaining but indifferent and easily won over by the competition.
- “Detractors” who give 0-6 are not happy and might feel trapped. They will not be singing your praises.
The theory states that the best measure of a company’s growth potential is to subtract the percentage of customers who are “detractors” from the percentage who are “promoters”. This will give you the Net Promoter Score.
If at the same time you also ask the follow up question, “Thanks, can you tell us why you chose that score?”, it provides the opportunity for customers to sing your praises or to point out what you need to change to make them happy.
Our Net Promoter Score is currently 62.5!
There are lots of benchmarks out there for NPS by industry, so you can get a rough idea as to how you compare. Reichheld claims the average American company scores less than +10, and the highest score between +50 and +80. We’re very pleased with the result of our latest NPS survey sent to a cross section of our clients. Our NPS is +62.5! That’s a whole lot of delighted customers.
What are you waiting for?
If you want to grow your business then measuring NPS should be on your radar. High scoring NPS companies will grow faster. It opens up communication channels between you and your customers. Find out what you’re doing wrong so you can rectify it and what you’re doing right so you can replicate it. In turn this will drive business growth through improving employee and customer happiness and loyalty.