Running a business need not be like having stock in a volatile market, up one day and down the following with no real indicators of what happened. When you invest in a dream by opening your own business, you want a steady stream of reliable profits.
Now that your business is competing in the marketplace, you want to ensure it excels, so you need a plan. One commonality of all businesses is the customer; therefore, providing superb customer service gives you the edge. But, just how do you know how you are doing with your customers? The Net Promoter Score is a measuring tool that gauges how customers rate a business. It is also a good indicator of whether a company will lead its competition in growth. The following post will explain how the score works and shed light on how business owners can increase their score. Customer Service Software
Net Promoter Score: The Basics of How it Works
The Net Promoter Score arrives at an index score that ranges from -100 to 100. The score is reached by rating the answer to the following simple question: “How likely would you recommend the brand or company to a friend or associate? Respondents answer this question by using a 0 to 10 scale, with 0 being “never recommend” and 10 being “highly likely to recommend.” Respondents scores are categorized, which defines what type of customer they are. Here is a list of the categories, how they are rated, and what they mean:
Promoters (9-10): Respondents who score in this range are passionate loyal supporters of your business. They are ardent in recommending your business to their friends, co-workers, and associates.
Passives (7-8): Respondents who score in this range “satisfied but unenthusiastic customers.” These customers may be tempted to go elsewhere if they receive competitive deals.
Detractors (0-6): Respondents who score in this range have not had a satisfactory experience with your product or service and may do harm to your brand/company by negative word-of-mouth advertising.
The way in which you get the Net Promoter Score is by subtracting the percentage of Detractors from the percentage of Promoters. So, for example, if you all your customers were Promoters, you would score a 100, and conversely, if everyone fell in the Detractor category you would score a -100.
Obtaining the Net Promoter Score
Knowing how the Net Promoter Score works is one thing, but implementing it is another. Your first step is to access how your customers feel about promoting your product. If you have no idea what your customers are experiencing, then you can only guess; your insights will be unscientific. Through surveys, businesses obtain valuable data on how their customers feel about their product. Outsourcing to a customer support center alleviates busy owners and managers in two ways:
- Streamline all modes of communication such as calls, emails, chat, and so on into organized and categorized tickets for easier review.
- Customer support software sends custom survey links in emails optimizing feedback.
Increasing the Score
Businesses that want to boost their edge on the competition will need to increase their score. That entails moving customers up the ladder from one category to the next. As an owner or manager of a business, you may wonder where to begin. Most people would probably think to focus on the detractors and get them on board is the most important category to attack. However, an interesting study by the Harvard Business Review gives a different perspective. Although their study looked at a different kind of model, it had a similar enough structure to draw some comparisons and conclusions. In the Harvard study customers are categorized into four groups based on the customer’s emotional connectedness with a brand:
- Unconnected emotionally (similar to the Detractors).
- Highly satisfied, but not fully connected (similar to the Passives).
- Perceiving brand differentiation and satisfied, but not fully connected (similar to the Passives).
- Fully connected (similar to the Promoters).
By moving customers along the pathway from the #3 spot to the #4 spot – fully connected, as opposed to focusing on moving the unconnected customers up a notch, had more significant value to businesses. They discovered that when a customer reached the level of fully connected, that customer would be “52 % more valuable, on average, than those who are just highly satisfied.” Companies saw three times the return when customers went from satisfied to fully-connected versus unconnected to satisfied. This indicates to businesses to spend your focus and resources on current customers.
So, how can businesses move this crucial group to fully connected or a Promoter. The customers in the study above are already satisfied, yet not fully connected. It’s evident they like the product well enough, but need something more to draw them into that emotional connected experience. Provide the following to move this category to fully connected and increase your Net Promoter Score:
- Accessibility (allow customers to update, manage, and access their profile and customer information)
- Friendly environment
- Excellent customer service
- Provide an outlet for customers to provide you with feedback, ask questions, and so on. This often times stops problems before they start.
Businesses must use various methods to analyze their success with customers if they are to stay competitive. The Net Promoter Score is one tool companies use to measure their customer service. Raise your score and propel the business forward in the market. At Vision Helpdesk we assist businesses with customer service software solutions and survey delivery options. For more information on how you can raise your Net Promoter Score, please contact us today!