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.
Our Commitment to NPS
Here at Alchemer, we practice what we preach. With our recent discussions about the importance of Net Promoter Scores, you can bet we take pride in our NPS. We’re constantly working to leave our customers more satisfied and more likely to refer us to their friends and colleagues.
Benefits of Tracking NPS
Tracking our NPS over time has allowed us to identify areas where we can improve our service. This approach helps us grow our customer base by making data collection and analysis easier—and even more enjoyable—than before.
The Importance of Customer Satisfaction
But let’s take a step back from NPS. Why is it even important to track customer satisfaction and loyalty in the first place? If sales and revenue are steadily trending up for your business, that means that people must be happy with your products and services…right?
WRONG.
Consumerism has evolved to a point where customers hold more power than brands. If someone is dissatisfied with a business, finding the resolution to their problem can be as easy as tweeting 140 characters of disgust at the brand. Businesses that prioritize customer satisfaction are eager to protect their good-standing reputation. They often go the extra mile to resolve issues quickly for their customers. If they fail to do so, the customer can easily switch to a competitor found online. A luxury that didn’t exist until relatively recently.
For these reasons, customers now expect brands to be proactive with their service. They want a seamless experience from start to finish. They demand individual attention, timely responsiveness, and even a sense of inclusion in a community larger than just themselves.
How NPS Can Help
So, there’s a lot of moving pieces when it comes to measuring modern day customer satisfaction. Businesses that want to thrive, not just survive, need effective strategies and processes in place. These should allow them to benchmark, measure, and act on precise metrics that reveal how customers are feeling and thinking at any given moment.
That’s where NPS comes in…
NPS serves as a single metric that companies can use to define the progression (or regression) of their customer satisfaction and loyalty rates. By asking customers a simple question—”How likely are you to recommend [COMPANY] to a friend or colleague?”—companies can start collecting valuable data. This longitudinal data can then inform all high-level business decisions.
Proven Results from NPS
Research conducted by Satmetrics shows that NPS results in:
- Higher retention rates
- Increased cross sell/upsell opportunities
- Lower cost to serve
- Lower marketing costs thanks to word of mouth
Companies that have embedded NPS into their strategies have benefitted from the following results:
- 50% increase in customers over six months
- 98% retention rate
- 30% growth rate that outperformed the market by 30% over two years
- $183M increase in revenue in two years
These are powerful metrics that should catch the attention of any decision maker. If your company isn’t currently measuring NPS, it’s time to rethink your strategy for enhancing customer satisfaction and loyalty.
Click here to learn more about NPS, and to read about our Activated NPS Solution, click here.
