NPS score is an acronym for Net Promoter Scores is a mechanism working as a tracking platform for the companies to assess the satisfaction of their customers who further promote their business by means for larger purchase and a larger customer base. NPS works as an intelligent feedback managing system that helps an entire company providing products or services to revolve around their customers and create a healthy B to C culture for them.
NPS score as rating system not just helps in getting better customers to a company but as investors. The process of deriving an NPS score for startups as well as well-established companies is by primarily focusing on getting feedbacks from their customers through surveys and gathering their experiences while purchasing and the image the company holds in their eyes at large.
The reason why Net Promoter Scores is important is because since the idea of economy and entrepreneurship has been in existence, customer base has been the most important asset to any company for growth and sustenance. Happy customers also promote more sales and better customer influx. Hence, better income. NPS works as a metric that can be utilized to assess the customer satisfaction and loyalty level vis. how they have been promoting you.
It goes without saying how much this mechanism would mean to a startup that relies heavily on how their customers and clients respond to their performance. Let’s catch a glimpse of how a startup can use NPS to its benefit.
- Net Promoter Scores is a metric mechanism that helps you assess the chances of you getting noticed, recommended by your customers to their colleagues, relatives, friends, acquaintances, etc.
- The promoters’ score are tabulated as either a positive or a negative. The more positives you get, the better your chances of getting promoted to others by your customer are.And vice versa.
- Net Promoter Scores works on three dimensional ground. All three dimensions are seen segments under which you can put your customers and their ratings.
- Passive Customers
Promoters generally give you a positive feedback with a ranking/score of 9-10 and are apparently your loyal and satisfied customers. Passive customers will rate you from 7-8 and can be dicey in recommending you to others. Detractors on the other hand are most dissatisfied and clearly upset customers who will show no interest in recommending you to anyone. They will rate you from 0-6.
- Now understand how you calculate the total score. You collect all the scores and subtract the promoter’s percentage from the detractors percentage and you shall get your final verdict. You will be remaining with a score ranging from -100 to 100. A score of +50 is considered a good score for startups and that they are at a higher chance of being recommended further.
- For a startup, it can be a little difficult to get hold of a direct survey prepared for them to check their customer loyalty level, for that you can initially rely on various NPS Tools found online.
- Once you decide upon which tool to lay hands on, decide on how you would like to go about it and what would you like to ask you customers apart from the one question mentioned below.
All this depends primarily on one question in the survey- “how likely are you to recommend us to others?”
- If you have probability of being rejected of sorts by your customer or some disloyalty issue, think again! it might be because you are lacking somewhere in pleasing them, more than appeasing the customer and luring them with offers, it’s actually the products and services you offer that meant more to the customer at the end of the day. Rectify where you are lying low.
- In a corollary to this, you make sure to ask your customers the next very important question, “WHY?”. Ask them what could be their reason to not rate you well enough and how can you improve. And try to fix the issues. It will help in the long run.
- Whichever tool you use, make sure it is user friendly. Customers who are loyal to you are most likely to fill in any survey form or questionnaire, manually or technically. But if the process of providing feedback is more tedious than purchasing itself, who would like to provide you with it whilst taking time out for this special requirement of yours. Make simple questions and make the platform user friendly.
Understanding your customer is the major challenge for any company and improving and increasing your customer base is the real challenge besides maintaining the quality of your products and services worthwhile. Hopefully the tips mentioned above help you in fetching that ideal Net Promoter Score while encouraging your customer base to promote you to others, stay loyal and increase your revenue.