Net Promoter Score® is a metric that top companies across the world use for Customer Management. Basically, Net Promoter Score® calculated Customer Loyalty, based on whether your customer want to recommend you to others. First developed in 2003, Fred Reichheld called it the ‘ONE’ number companies need to grow. According to him, NPS®, not annual sales or gross profit is the number companies must focus on. Therefore, NUMR, a customer experience management (CXM) company recommends Net Promoter Score® for increasing the bottom line.
NET PROMOTER SCORE® CALCULATION
Net Promoter Score® is calculated based on 1 question. Which is-
And, based on their rating, all respondents are divided into-
PROMOTERS (9 or 10) – These are your loyal, enthusiastic admirers.
PASSIVES (7 or 8) – Because, these are partially satisfied customers, they are not loyal to your brand.
DETRACTORS (6 and below) – These are your angry, dissatisfied customers. Therefore, they have a high chance of defecting to your competition.
Hence, the objective of a Net Promoter Score® program is to decrease Detractors and increase Promoters.
Below are NUMR’s top 5 tips to turn your Detractors into Promoters-
Since, Detractors have the highest chance of churning, make engaging with them a priority. Moreover, NPS® is not a statistic collection exercise. Therefore, devising and implementing a Follow Up strategy is crucial.
As Maya Angelou once said, “people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Generally, customers like it when they know that a company is listening to them.
Therefore, the first step of converting Detractors into Promoters is to engage with them and understanding their grievances.
Unquestionably, Close Looping is the most effective way to turn Detractors into Promoters. Furthermore, it empowers a company to start a dialogue with its customers immediately after a transaction. Thus, it is crucial for preventing Detractors from defecting.
For more details, read our ULIMATE GUIDE TO CLOSE LOOPING.
(Also, read this Case Study on how we used Text Analytics for effective Close Looping.)
After all, one of the easiest ways to show your customers that you are listening is to respond quickly. Usually, a long response time further deteriorates Detractors’ relationship with a company. Conversely, listening to and swiftly listening to their issues can foster loyalty and turn them into Promoters.
Generally, frontline employees are the experiences that most customers remember. Undoubtedly, they are the eyes and ears if a company. Therefore, giving them the information and authority to act can truly help retain Detractors.
For instance, an employee at a car service center, if provided with some power and access to the feedback dashboard can swiftly reach out to a dissatisfied customer and by offering a free service, secure the customer’s loyalty. In a situation like this, front-line employees truly have the power to turn Detractors into Promoters.
Also, read how NUMR helps companies empower the frontline for higher profits, here.
Churn Analytics allows companies to predict customers who are about to churn by some X- Data and their historical Net Promoter Scores. As Reichheld wrote, “a 5% increase in customer retention produces more than a 25% increase in profit.” Therefore, it is crucial to prevent Customer Churn/Attrition. Usually, Detractors have the highest probability of churning but even within in, companies should prioritize the most at-risk Detractors.
NUMR, a customer experience management (CXM) company uses Machine Learning and Predictive Analytics to help companies minimize Churn. Read how we do it, here.
*Net promoter Score® and NPS® are registered trademarks of Bain & Company, Satmetrix and Fred Reichheld.
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