The one and only thing that can make a business grow sustainably in a competitive market, is its customers – loyal customers. If you build a product and offer an experience that people love, they won’t just remain loyal to your brand, but also recommend it to their friends and family.

For that matter, 70% of the consumer market actually trusts recommendations given by those they know when it comes to making purchase decisions. Word of mouth marketing is literally one of the most effective channels to grow your business.

But without a way to measure and track this marketing tactic, you’re never going to be able to optimize it for even better results.

For instance, how do you know which of your customers are really happy with your products and which of them think you need to improve?

Looking for online reviews is one way – but what if the negative ones tend to float online too often? It’s going to make you lose authority in your industry and niche, and even drive away the potential customers.

This is where a Net Promoter Score (NPS) steps in.

What is the Net Promoter Score (NPS)?

Established by Bain & Company back in 2003, Net Promoter Score was created to help businesses measure and evaluate what their customer loyalty looked like. Would they stick to their brand and even recommend it to others, or would they switch to the first company that offers them something similar along with an attractive deal?

The Net Promoter Score is an index that ranges from -100 to 100 to measure the willingness of a customer to recommend a business product or service in his circles. It is used as a measure to gauge how satisfied the customer is with the business. The higher the score, the more satisfied he is and the more likely he is to recommend the business to his family and friends.

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Understanding the NPS

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  • Detractors: These are people who give you a score that’s lower than or equal to 6 because they aren’t too happy with your business products or services. In fact, they are also not likely to purchase from your business again as well as drop negative reviews when asked for an opinion.
  • Passives: These are people who are kind of satisfied with what your business offers, but would also experiment with what your competitor has to offer. They usually drop a score of 7 or 8 on the scale. Passives don’t really drop any negative reviews about the businesses, but they don’t recommend it either.
  • Promoters: Those who rate you 9 or 10 are customers who absolutely love the products and services your business is offering. They are also the repeat buyers, who would happily turn into your brand’s advocate and recommend it in their circles or to potential buyers.

If your business has more detractors than promoters, the score is overall negative and the vice versa is positive. Out of the two, the negative score should be your worry.

The negative score doesn’t just indicate that your existing customers are not happy with your products and services, but also the fact that there are possibly plenty negative reviews online to spoil your online reputation.

Since more than 50% of the consumer market does their research online on a business before engaging with it, it is important that you don’t garner way too many negative reviews or feedbacks. The more negativity around you, the higher are the chances for a potential customer to turn away with a concern of quality taking over.

Therefore, it is important that you fix the score you get. We don’t mean tampering with it, but actually making an effort to improve the experience of the passives and the detractors. The ultimate objective here should be to understand why your customers are unhappy, identify the loopholes in your products, services or experience, and improve them.

Benefits of using the net promoter score

Now that you know what the net promoter score is and what it means, let’s take a look at some of the benefits of using it in your business marketing and growth strategy.

1. Measure customer loyalty

Let’s be honest, there is absolutely no way you can force a customer to stick to your business or purchase from you every time. And there is no way for you to measure customer loyalty any better than NPS.

NPS recognizes the customer satisfaction level, helping you understand how loyal they are or will be to your business. The happier they are, the greater is their loyalty to your brand. The lower the score, the more likely they are to look for alternatives.

2. Improve customer experience and satisfaction

The NPS gives you a deeper insight into the customer experience – be it on your website, while making a purchase or after a purchase. Based on the score that a customer gives you, you know exactly how an interaction went.

Using the same data, you can then dig deeper into your processes to identify where your business is losing their customers. It helps you improve the customer experience and hence, the satisfaction.

3. Boost word-of-mouth marketing

Word-of-mouth campaigns are the most effective marketing tactic. But to be able to strategize it well, you need to know just how many of your customers are willing to participate in it. And the NPS gives you exactly that insight.

You will be able to create robust referral marketing campaigns based on the customer loyalty levels. The data call also be strategically used to hook the detractors and passives into the loop of word-of-mouth in lieu of incentives that add up to your business goals as well.

4. Get first hand customer feedbacks

NPS gives you the opportunity to get first hand feedbacks from your customers, before they go and post reviews on different channels on their own. This is important because it is one effective way of ensuring that the negative reviews don’t overshadow the good ones online, bringing down the image of your business.

Apart from that, you also establish a rapport of being a business that believes in improving the customer experience consistently. For instance, even Amazon asks for feedback along with the NPS after each purchase is delivered to a customer.

5. Reduce your customer churn rate

Detractors and passives are usually the customers who are more likely to leave your business to choose another that offers them a competitive deal. This results in an increased customer churn rate which hampers the growth of your business.

NPS gives you an understanding of what is hampering a customer’s relationship with your business. Knowing who your promoters are, you can invest more resources into turning the passives and detractors in your favour.

6. Boost customer lifetime value

Adding up all the above points, NPS helps business improve their customer lifetime value. When you know what experience customers are having interacting with your business, you are able to spot the loopholes at an early stage and improve them for better results.

This in turn, ensures an improved experience for all your customers – thereby, boosting their customer lifetime value, decreasing the churn rates and helping your business grow sustainably in a competitive market.

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How can you gather the net promoter score for your business?

Now it is practically impossible to run after every customer, asking for reviews and feedbacks on products and services that they engaged with or purchased. But here are two ways you could effectively nudge them to give you a score.

1. Ask them before they leave your website

The best time to ask them to give you a score is when they are just about to leave the website. Their answer will also give you an idea of what their on-site experience was like, how you can improve it and stop losing customers.

Depending on where and how you implement an exit intent campaign, you can get insights into what the visitors think of your products, services, website content, blog content and more.

net promoter score exit bee

Never let a website visitor leave without getting a score. Run a NPS campaign with Exit Bee today!

2. Of course, email them!

Email marketing is our all time favourite when it comes to communicating with our customers. And that’s exactly the channel you would want to use to get your net promoter score. Based on a purchase made by the customer or the recent interaction they had with your business, send out an email asking them to give you a score as feedback.

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Not just will it help you understand their experience better, but also let them know that you’re focussed on improving it for them and are customer-centric in approach.

Dig deeper into the customer experience your business has to offer and ensure no customer goes away dissatisfied.

Have you run a NPS campaign for your business before? When was the last time you rechecked how many of your customers were actually satisfied with what your business offers?

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Vanhishikha Bhargava

Content Marketer at Exit Bee. Most of the times found trying to create compelling copies for blogs and digital campaigns, keeping a watch on what's happening on social media or ranting on Twitter. At all other times, not found.

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