Be it small or big; every business has to break-even before it starts generating profit. Customer satisfaction as well as retention, both the aspects are very vital for every corporation for yielding revenues. Now, the million dollar question is, how can the corporates measure the degree of affinity of their client or consumer base?
Cut to NPS or Net Promoter Score, a customer loyalty metric conceived by Satmetrix and Fred Reichheld, Bain & company. NPS is a business management tool to ascertain how committed the end-users are to the provider, which could be an employer, a company, or any entity on Earth. NPS serves as an alternative research pathway for customer satisfaction.
First, a survey is mailed to all the available recipients (i.e., those with a valid email) with an initial response question, “How likely you are going to recommend our company to your friends and co-workers on a scale of 1 to 10?”, and based on that initial rating the NPS score is derived henceforth. Feel free to replace company with the brand, service, product, or anything that you want to convey.
There could also be a follow-up for the primary NPS survey; which may request additional information from the participants; such as; their age and gender, the reason behind their ratings, are they salaried or self-employed, etc. It is crucial to make the participants feel comfortable when asking for such personal data and the asker should avoid being too persuasive and nosey at any cost.
As soon as you receive the initial rating, your first job is to eliminate the detractors (all those people who rate 1 to 6 out of 10) from the promoters (who give a rating of 9 or 10). What remains is your NPS score.
NPS Surveys offer much freedom and flexibility in their implementation and usage; and they could be easily embedded in other web application like Zendesk, Slack, MailChimp and Google Sheets to calculate the score more accurately and also in real-time.
NPS also need a method to close the loop. Closing the loop means actively engaging with all the customers who provided at least some form of feedback, learning from those inputs, and changing the negative perception of the company (or brand, product, service, whatsoever); turning a detractor often into a promoter in this process.
Some companies like Charles Schwab Corporation calls their customers who provided with valuable insights (positive criticisms and suggestions). NPS has been widely embraced by many Fortune 1000 corporations for its usefulness. One interesting observation related to software and service-centric NPS is that detractors appear to stay with the company while passives ditch.
You can use Typeform for generating customized NPS survey forms that are easy to create and user as well as participant friendly. Facebook, Financial Times, BBC, Airbnb, The New York Times, and many other famous global corporations use Typeform. You can refer their quick start to start creating incredible NPS surveys – now!
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