Of all the metrics that your company spends its time on, how much focus is spent with customer loyalty? This is one of the most effective metrics across the board in terms of company success. It has the ability to influence your company’s revenue, your employees’ workloads, and even your product.
One of the key ways to measure your company’s customer loyalty rate is to attain its Net Promoter Score (NPS). This is gauged with a simple, one-question survey that most consumers will see frequently throughout their lives: â€œHow likely is it that you would recommend our company to a friend or acquaintance?â€ The question is usually accompanied by a 1-10 scale, which participants are asked to use to respond. The three categories of respondents are as follows:
Promoters, respondents selecting a 9 or 10, are considered to be loyal customers who will help widen your customer base, will likely participate in other feedback surveys and aid in the growth of your company.
Passives, respondents selecting a 7 or 8, are considered to be happy customers but not ones who are likely to take up your company’s side if a competitor offers an alternate product. These customers have a lot of potential to become loyal with the right attention and care.
Thirdly, Detractors are respondents who select any number 6 or below. These customers are considered to be at risk of declining any further interaction with your company, and are not at all likely to speak in a positive light about their experiences — in fact, they are usually found to express openly negative opinions on your company.
Once you’ve been able to categorize your buyers into these three groups, you can properly assess your company’s Net Promoter Score. Ideally, your company will have an NPS of 50% or more, which means over half of your customers would be willing to speak positively about your product. When you have this information, you become capable of creating more customer advocates, sending encouraging information to customers who will repeat it, and offering exclusive packages and services to your loyal buyers who will appreciate it the most.
The power of attaining your NPS doesn’t stop there. You can use this number to determine when and where to prompt for customer feedback input, drive revenue, boost your company image, and identify key opportunities for improvement. The NPS score can make all the difference in the world — shed some light on the scene!