The following post is part of a series that will help inform readers of the power that a company’s Net Promoter Score has on its long-term business goals.
It might seem like common sense that brands should continuously collect feedback on their products and services. Doing so allows them to optimize their efforts and maximize profits. It also helps ensure and sustain product-market fit. But it’s far too common that companies push feedback to the backburner upon encountering challenges.
Without a proper feedback strategy, or regular analysis of NPS data, drawing insights becomes challenging. This lack of insight makes it difficult to leverage data effectively and drive informed business decisions. Companies that miss the mark with NPS are overlooking easy opportunities to enhance customer relationships. They also miss chances to innovate better products and reduce churn.
NPS data is gathered by administering a single question to the people that use a business’s product or service: “What is the likelihood that you would recommend [COMPANY OR PRODUCT] to a friend or colleague?”
“[NPS] helps us determine not only whether students like our customer service and user interface,” says Peter Poer of Magoosh, the online test company for standardized tests like the GRE and the SAT. “But also how well our products prepare students for their exams.”
Let’s explore why some companies hesitate to invest in collecting product feedback using NPS data:
1) These companies might not realize the true value of collecting and managing product feedback.
If a business lacks a product feedback management strategy, decision-makers may not fully understand its benefits. They might be unaware of how valuable such a strategy can be. Doubts may arise about whether customers will provide valuable insights. They may also fail to realize that feedback’s power comes from consistently collecting and analyzing it over time.
2) These companies might have no clue where to start when it comes to collecting and taking action on feedback.
Devising and implementing a feedback strategy can be overwhelming, and it can be tough to know where to start. Remember, feedback gains its power from consistent measurement, which helps identify benchmarks and track progress over time. Therefore, stop procrastinating and start collecting feedback data right away. Once the company starts collecting responses, they can begin analyzing the feedback. This process will help them address and resolve the key issues that emerge.
3) These companies might think that if sales are up, customers are happy.
Decision makers are often concerned with, and burdened by, the bottom line. They may ignore important metrics while focusing solely on sales numbers. Collecting feedback from customers helps you predict and avoid surprises like high churn rates.
4) These companies might struggle to get real, honest feedback.
Some companies might find that they don’t adequately incentivize customers to provide useful feedback on products and services. However, small campaigns that offer tangible incentives, such as discounted products or services, can be very effective. Even gift cards for participating customers can yield a strong return on investment.
5) These companies are unable to centralize the data.
Some organizations might have issues with organizing feedback data in one centralized location. After all, what’s the point in even collecting feedback if the data received is such a mess that it’s not able to inform business decisions? Implementing a tool that collects feedback data can greatly benefit a company. Such a tool not only organizes the data but also provides unique reporting features. This approach simplifies, streamlines, and enhances the efficiency of the entire feedback process.
Despite these challenges, feedback helps businesses identify trends in customer satisfaction. It provides the information needed to create action items and processes. These actions can alleviate customer frustrations effectively.
Click here to learn more about NPS, and to get started with NPS collection immediately, be sure to download our ready to use NPS template!
