Net Promoter Score® is a metric top companies across the world use to manage Customer Experience. In fact, Reichheld calls it the ONE NUMBER that companies need to grow. It measures how loyal your customers are based on whether they will recommend you to others. Also, it is a proven indicator of future growth. NUMR, a customer experience management (CXM) company recommends using it to track and predict Financial data. Additionally, this should be the end goal of any NPS® program.
One of the questions that we get asked is, “Why can’t we measure NPS in-house?” You can. However, this DIY attempt to measure Net Promoter Score® is not a good idea. The beauty of the NPS® system is its simplicity. In fact, one of the reasons Numr recommends it for CX is that it’s uncomplicated and easy to understand. However, there is way more to an NPS® program.
NPS® IS MORE THAN JUST A NUMBER
To emphasize, Net Promoter Score® is not an exercise in collecting statistics. Moreover, it is symptomatic of the CX system that you have put in place. Merely reporting the number is not enough. The main objective of an NPS program is to obtain granular insights from customer opinions.
IMPACT OF NPS® ON FINANCIALS
Ideally, the end goal of any NPS program should be predicting financial data. Do you know what impact a 5% increase in your NPS will have on your bottom line? A customer experience management (CXM) company can help you improve financials by delighting customers using an NPS program.
Also, to know how Numr uses Transactional and Relational NPS for growth, click here.
Basically, an NPS® survey without an open-ended text box for comments and suggestions is incomplete. Since, open-ended text is the richest sources of customer feedback, ignoring it could lead to disastrous outcomes. By leveraging Text Analytics, Numr helps companies analyse comments.
First, we pick out recurring topics that most customers are talking. Then, we utilise Regression Analysis to help companies prioritize the issues that have the biggest impact on their NPS. Generally, most companies do not have the time or resources to do continuously do this in-house. Therefore, an experienced market research company can be of great help.
(Read our case study on how we helped a company prioritise decision making using Text Analytics.)
As stated above, an NPS® program is more than just the score. It is dynamic. Meaning, that it is not a one-time exercise. Because, customer opinion changes and evolves continuously, so does the NPS®. Therefore, measuring it regularly is important for constant customer engagement and sustained Growth.
Moreover, incorporating NPS® in daily decision making is essential for long term Growth. Numr, a Market Research company in India accesses NPS® data daily and to help other companies make instant decisions based on it.
To conclude, companies can do NPS® in-house if all they want is to report the number. However, if they wish to realise the full potential of an NPS® program and transform their CX, they should contact an experienced MR company.
Do you want to convert your customers into loyal advocates of your brand? Contact us.
*Net promoter Score® and NPS® are registered trademarks of Bain & Company, Satmetrix and Fred Reichheld