NPS can measure customer satisfaction and loyalty by simply assigning a score between -100 to +100 to transform countless confusing metrics, into a simple measure of client experience success. Given below are 5 ways by which companies can benefit from using NPS to calculate their customer satisfaction:-
1. It is simple and easily interpretable:
NPS gives the company an explicit number that is easily interpretable by the managers and all the employees of the organization. It is relevant to everyone and not just your customer service team.
These surveys can be easily sent out to your customers via email, SMS, or add it to your website as a feedback form. This way you can keep track of your business growth and customer satisfaction.
2. It helps to measure customer loyalty and enhance customer retention:
This customer loyalty metric gives an insight into customer experience and satisfaction. It estimates the likelihood of new and repeat business.
According to current research, 66% of consumers admitted that they tend to go back to those companies to which they are loyal. This will help to enhance customer retention if your service and product quality improve after implementing your customer’s suggestions.
3. It helps in segregating customers into different categories:
This method of categorizing your customers will allow you to deliver personalized services. By using the NPS questionnaire, your customers will be divided into 3 categories: 1.Promoter, 2. Passives, 3. Detractors
If you have a large number of promoters in your company, it is on the right track but if the number of passives and detractors are more in number, you should work on improving your service and product quality immediately.
4. It administers a benchmark against the competition:
The fundamental factor of NPS is that its standard evaluation is used by companies worldwide.
Keep track of where your biggest competitors are in comparison to your company. Send out continuous surveys and take action to upgrade it. This will make you constantly strive for improvement and will result in a more focused and enhanced outcome.
5.It gathers higher response rates:
Customers generally avoid surveys that are time-consuming and elaborate. The advantage of NPS surveys is that they are short and concise.
With higher response rates you will have a larger amount of data. The score becomes more reliable and you will be able to assess your improvement more efficiently over time.