By: Sheila Mbwali
A customer’s experience is a significant driver of business goals & success in any organization and since the Net Promoter Score (NPS) was invented almost two decades ago, there has been a correlation between a high positive NPS score & increased customer retention, reduction in churn rate & improved customer lifetime value (CLV). Giving an example – If you are in a sector such as healthcare, it is critical that customer relationships are at the forefront of any choice, that is why utilizing supportive mobile crm and other software-backed services, can appeal to what customers need and can keep up with that loyalty.
The Net Promoter Score is a measure of a company’s customer satisfaction, loyalty & advocacy. It is one of the widely used surveys to gauge customer engagement & satisfaction.
The NPS is a great predictor of growth by focusing on the things the company is doing well and identifying the detractor issues which can be a warning sign of where the company is struggling to meet its customers expectations. That is why it is now part of most Key Performance Indicators (KPIs) for companies.
The NPS score is simply computed by subtracting the percentage of detractors from the promoters.
The scores range from -100 to +100 and a score of zero or below is an obvious red flag. It requires concerted action by all team members to make the necessary adjustments. A score of less than 49 shows that there is need for improvement while 50 – 69 is a strong performance however, a score above 70 is outstanding.
It has a rating scale of 0-10 with customers who score 0-6 being detractors, 7-8 being passives while 9-10 are promoters.
When a company has this data collected and analyzed from its customers, it can develop targeted strategies to manage each category of customers respectively. With such customer experience data, the business can also understand if their branding works or not.
For example, promoters are excited, happy and loyal customers therefore, the company needs to engage them frequently to get referrals & use them as brand ambassadors who enhance the new customer acquisition efforts.
Passives need to be handled with caution because they are neither enthusiastic nor disinterested in the brand, they can easily be turned into promoters when the company takes time to investigate the particular reasons they are still undecided.
Detractors on the other hand are ones to actively watch out for and handle in a prompt professional manner to avoid any likelihood of damage to the brand. It is also important to discover the issues that caused the unpleasant customer experience by adding some qualitative fields to the survey.
This is how BrighterMonday Uganda has approached the NPS score to identify the promoters, passives and detractors month on month. We recently recorded a +90 NPS score and by using Rate My Service to collect instant responses, we are able to design a number of strategies to manage our promoters, passives and detractors.
For example, we used these insights to launch a client gifting initiative with our marketing & sales teams to show our gratitude. This created a valuable opportunity to strengthen our relationship with the clients and improve our service delivery & customer experience.