Using AI to understand customer feelings, we create focused strategies to raise sales and lower churn
Net Promoter Score® is a loyalty metric leasing companies use to manage Customer Experience. Basically, it measures customer loyalty based on the possibility of recommendation or referral. NUMR, a customer experience management (CXM) company recommends using NPS® to streamline your entire CX initiative. Since, it is calculated based on 1 question, it is easy to understand. The question being,
“On a scale of 0 to 10, how likely are you to recommend us (product/service) to your friends and colleagues?”
And, respondents answer on an 11-point scale. Now, based on their answer, all customers are divided into 3 categories. Namely-
Clearly, Net Promoter Score® is an indicator of Customer Loyalty. And, a strong loyalty to a company is emblematic of more customer transactions. To clarify, a high NPS® means that most of your customers are happy. This, in turn means that they are more likely to continue transacting with your company. Therefore, usually, a high NPS® results in a high Customer Retention Rate.
(To read about how easy but effective steps that can help you increase your NPS®, click here.)
As discussed above, Net Promoter Score® segregates all customers into 3 groups based on their degree of loyalty. Therefore, it provides a system to easily prioritise high risk customers. Right away, a company should follow up with Detractors and perform Close Looping. Furthermore, companies should engage with Detractors to retain them since “it is six to seven times more expensive to attract a new customer than it is to retain an existing one.” Additionally, “probability of selling to an existing customer is 14 times higher than that of selling to a new customer”.
After all, making sure that customers feel heard is essential to running a successful CX program.
Furthermore, NPS® is a real time metric. Therefore, it allows companies to quickly identify customers who are about to Churn, leaving them with enough time to retain them. (Read how NUMR, a customer experience management (CXM) company does Churn Analytics, click here.)
In conclusion, Net Promoter Score® is a powerful tool for reducing attrition and improving customer attrition. In fact, it goes one step forward. Instead of merely retaining customers, it has the ability to turn customer into loyal brand advocates. As Reichheld the creator of NPS® wrote, “The only path to profitable growth may lie in a company’s ability to get its loyal customers to become, in effect, its marketing department”.
*Net promoter Score® and NPS® are registered trademarks of Bain & Company, Satmetrix and Fred Reichheld
Stay in the loop with the latest updates and insider insights. Join our community and subscribe to our newsletter today.
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!
Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.