What is a Net Promoter Score? Can Automation Help You Increase Your NPS?
Net Promoter Score or NPS is the metric to calculate the customers’ loyalty, experience and predict business growth. Your company’s status in the market is mainly dependent on how your customers receive your services and love or hate them. Bad publicity by the consumers on account of poor services can lead to failing CSAT scores and low NPS numbers. A customer-centric organization is bound to stand apart from other companies, with a large number of satisfied consumers to its credit. But what can a company do to please customers who have had bad experiences? How is it possible to bring people back to the table if they have had a negative experience? How is it possible to also get the word out to the media, social, or otherwise about corrections that have been made?
Created by Fred Reichheld, Bain and Company, and Satmatrix in 2003, NPS is calculated based on customers who can be classified into three types; promoters, passives, and detractors.:
On a scale of 0-10, customers giving you a rating of 9-10 are promoters, the ones giving 7-8 are passive, and the detractors give the ratings from 0-6.
ON A SCALE OF 0-10, HOW LIKELY ARE YOU TO RECOMMEND US TO YOUR FRIENDS/COLLEAGUES?
The businesses whose sustenance of qualitative services has been stable have seen a higher NPS than an average firm.
Net Promoter Score = Percentage of Promoters – Percentage of Detractors
The Net Promoter Score Automation
The NPS is beyond just a score; it is how a company does business and thus forms one of the leading company’s primary features. It is the company’s leadership that defines the organization’s cultural values, ethics, code, and core economics. These businesses focus on improving the quality of their customer-employee relationships. It is with the customers’ loyalty that sustainable organic growth can be achieved.
Implementing the NPS software to automate the data collection of the NPS process is an integral aspect of a business. It collects feedback from customers at periodic intervals and provides employees with a chance for open-ended questions with the customers. This feedback is built within the operating systems which are used in addressing the customers’ concerns.
An effective automation can be achieved through the following primary areas:
- They are understanding the customer contact point through surveys. A personalized survey with your customers to know how they impact your business, is an important step in automation. The customers should not be over-surveyed too if they happen to be frequent visitors/buyers.
- NPS System Development – To understand the relation between the NPS survey questions and the company’s KPIs (Key Performance Indicators) and determining the types of NPS surveys is pivotal. The feedback information should be distributed and shared among the staff on timely basis.
- Understanding what drives your customers to a positive feedback is important. Improvements are possible if the service provider is able to understand the reasons behind negative feedbacks of your detractors. A post-survey follow-up can serve to be a result-oriented move towards improving customer relation.
- It is vital to have a closed loop system consisting of front-line, middle management and senior management. The customer service representatives, sales and technical support teams are classified as front-line management and play a direct role in handling the customers and subduing the detractors. The performance training and customer handling tactics are taught by the middle management. The availing of appropriate recognition systems, communication systems are done by the senior management. They also align strategies to ensure that the NPS score remains consistent.
Three Types of Net Promoter Scores-
|COMPETITIVE BENCHMARK||CUSTOMER RELATIONSHIP||EXPERIENCE|
|This allows the service provider to learn their customers’ reactions and the feedback of the customers of competitive businesses and the whole value proposition.||This score is carried out by timely surveys to assess the relationship between the company and the customers. The input goes to the accounts team, relationship managers and other related staff. This helps in making a collective decision to improve the sales and consumers’ experience.||The customers are sought for a post-buyer survey to know their experience with the services they bought.|
How to Turn Your Detractors into Promoters?
Losing the customers to bad publicity can be challenging for any organization. But this can be tackled in the following ways:
- To begin with, an NPS survey is the first step, as it is through this score that you will be able to recognize your detractors or unhappy customers. These surveys should be kept simple sans any unnecessary complications. Easier the survey, intense would be the feedback.
- It is difficult to achieve feedback from the detractors as compared to the passive customers or promoters. Never lure the customers with false promises. Attempt to resolve the matter with the solutions that your company ‘can’ provide.
- Carry out the surveys regularly and with automation software get notified about a customer’s dissatisfied experience, so as to act promptly and retain the customer.
Various Software Options for Automation
NAVOMI’s full lifecycle solutions and unique improvement strategies for your organization and your automation initiatives can help your organization achieve your business goals.