The success of business totally depends on the loyalty of your customers. If your customers are happy, you will definitely be able to achieve your revenue and growth targets. On the other hand, dissatisfied customers spell doom for your business because they may never come back for repeat purchases. Hence, it becomes vital to keep an eye on customer loyalty. While you can seek their opinion personally, it is not feasible because of the sheer size of the market. The best alternative is to use a customer loyalty metric to get a fair idea about it. NPS or Net Promoter Score is a parameter you can trust to measure the level of customer loyalty accurately. Here are some reasons why it really matters to your business.
Evaluate customer loyalty
Since NPS is a measure of customer loyalty, this is exactly the reason why matters to your business. Obviously, you would want to know where your business stands on this front. This will help you create an effective customer experience management strategy because you will have quantifiable figures to work with. Start with an initial NPS measure and revaluate the score periodically to understand whether your strategies are working or not. If you seem to be going in the wrong direction, do revaluate and re-strategize.
Increase your customer satisfaction
Customer satisfaction bears a strong connection to customer loyalty. Since NPS measures the number of promoters, passives, and detractors, it gives a fair idea about their satisfaction levels. A greater number of promoters indicate that the satisfaction level of your buyers is high and you need not do much to improve your business. More detractors, on the other hand, show that you need to rethink and implement new strategies to enhance the levels of customer satisfaction. After all, this is one of the key metrics for measuring the success of the business in the long run.
Identify the areas of product improvement
Another reason why NPS really matters for your business is that it enables you to identify the areas of product improvement. With accurate feedback from your customers, you will be able to know their expectations from your products and the gaps as well. This gives a reliable insight to tweak your products for matching the expectations and reaching the next level. Beyond addressing the shortcomings in your products, it also helps you understand how you lack in terms of customer services. In other words, NPS serves as an analytics tool you can leverage for product improvement.
Create more advocates for your business
Loyal customers or promoters are the basis of NPS. If you really want to understand its crux, Simplesat explains what a Net Promoter Score is and how it segregates promoters from detractors. The differentiation is important because it lets you focus on increasing the promoters of your business. These are the advocates who recommend your brand and products to the people they know. This empowers your business with word-of-mouth promotion, which is perhaps the most powerful marketing strategy as people trust real people more than brands.
Reduce the customer churn
One of the key concerns for businesses is customer churn because you would not want your customers to shift to another brand. So you need to focus on reducing customer churn and NPS can help you in this context too. Promoters are less likely to churn, which is the reason you need not worry about them. Rather, you should invest in enhancing the customer experience for passives and detractors so that they give you a second chance.
Align your sales and customer service team
Another reason why tracking your NPS matters is that it can help you align your teams to achieve the satisfaction levels that your customers expect. Primarily, they need to understand the statistics well enough, in terms of promoters, passives, and detractors. Since the score gives a fair measure of your strengths and weaknesses, you can guide your team to work on their interactions with the buyers. These interactions have a far-reaching impact on the relationship with them at all stages of their journey. Once your teams are trained and aligned to deliver the best customer experiences, your customer loyalty will increase.
NPS is not just a number; rather it is a powerful insight that serves hefty advantages to your business. It can bridge the gap between your team and the customers and ultimately help you deliver what the latter really want. As a result, your business gets a competitive advantage so that you can stay ahead and win the race.