If you are looking at the title of this blog and wondering what your Net Promoter Score is then chances are you probably aren’t tracking it, but that’s OK, because it’s really never too late to start.
First, let’s begin with the basics:
What is a Net Promoter Score? A Net Promoter Score – NPS – measures customer experience and predicts business growth. You can calculate your NPS very simply by asking customers one simple question that they answer based on a scale of 0-10: How likely is it that you would recommend [brand] to a friend or colleague?
Based on how respondents answer, they are grouped as follows:
Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
To determine your actual NPS, you subtract the percentage of Detractors from the percentage of Promoters. Scores can range from -100 (if every customer is a detractor) to a 100 (if every customer is a Promoter).
So why is this metric so important to track? Your NPS is the key measure of your customer’s overall perception of your brand. Word of Mouth is one of the best referral sources your company can have, so the more promoters your have, the higher your NPS, the more business growth you should see.
There’s the old saying, you don’t know what you don’t know. When it comes to your business, you can’t work to make improvements when you don’t know what you need to fix – and you can’t know what you need to fix unless you track your NPS.
Your NPS also allows you to see how your customer’s feel about you in various areas, such as:
- Major customer demographics or psychographics
- Cohorts of customers who responded to specific messaging
- Customers who deal with different divisions within your company
- All customers who dealt with individual Sales or Customer Support reps
- Customers who use certain product lines exclusively
The key take-a-way from all this data is that you can identify areas that need improvement, make changes, and measure what works and doesn’t.
So why track your Net Promoter Score vs. just profits or revenue? When you focus solely on the money, employees will follow suit and put sales over the customer experience, especially if earnings are tied to monetary based rewards. The NPS unites everyone and makes it a team goal – customer satisfaction – which in turn leads to growth and sustainability.
How can you easily start tracking your Net Promoter Score? Just ask your customers.
Sending out a simple survey after a customer interacts with your staff is a simple and easy way to start tracking. The first question should be close ended. Just a simple ranking of how you did – “How likely are you to recommend this product/company to a friend or colleague on a scale from 0 to 10?”. You can then follow up with additional questions to get more feedback: “What’s the main reason for the score you gave above?” and “What could we do better?”.
At Litchfield Bancorp, we think feedback is a vital part of doing business. We love hearing from our customers – it’s why we firmly believe that Every Customer Counts. Want to share your experiences or have questions about our products or services – give us a call or stop into any of our branches!
Margret K. Warner
Vice President, Commercial Lender
Director of Business Services