Has Your Brand Adopted The NPS® Philosophy?
Word-of-mouth marketing is a massive tool that is utilized by the best brands in most industries, but how can you set up your Customer Experience to encourage a consistent stream of promoters? Whether it takes place in-person, online or over the phone, consumer recommendations have been proven to be one of the strongest methods of convincing new customers to try out your brand. It is an effective approach because of the transparency and honesty involved in these recommendations. There is no added incentive for consumers to recommend your product or service to their friends and family, it is simply a measure of the value that your employees and products are bringing to the table.
Creating a customer journey that encourages high levels of word-of-mouth recommendations is better known as the Net Promoter Score ® philosophy. A brand’s NPS® is the quantifiable number of how likely a consumer will recommend your product to their family or friends. Organizations can capture this data by implementing the NPS® philosophy within their survey feedback program. All it takes to start is simply asking the question, “On a scale of 0-10, how likely are you to recommend this product or service to your family and friends?” Your team can then categorize consumers based on their answers, with a 9-10 equaling a promoter, 7-8 representing neutral persons who will most likely not recommend or dissuade other people, and 6 or below representing a detractor, or those who will actively move their network away from your brand.
Organizations that adopt this philosophy and questioning at multiple points along their customer journey will capture a better understanding of organizational performance, ultimately moving them towards influencing a higher number of brand ambassadors. Knowing this information is vital to success for any kind of organization. In fact, brands that have embraced the NPS® philosophy have experienced a 50% increase in customers over six months at a 98% retention rate. These numbers prove that brands that are more willing to listen to their customers at multiple points during the customer journey will be more likely to produce individuals who answer with a 9 or 10. Each NPS® strategy will be unique to every individual organization, but ultimately if your organization is striving to reduce as much customer effort and provide optimized value at each touchpoint, consumers will notice and begin talking to their friends and families.
Adopting this NPS® system involves more than simply asking the foundational question several times before, during and after the purchase. Ultimately, NPS® success requires appropriate action based on the feedback provided by these questions. Thus, it is important that your team is funneling consumers into appropriate close-loop practices based on the answer they provided to the NPS® question. Your organizational leadership needs to staff a team that is dedicated to filtering through this information on a consistent basis, rather than placing the question into your survey platform and letting the data collect for several months at a time. In doing so, you are providing your employees with real-time information that can be used to directly improve each interaction a consumer has with your brand.
Ultimately, creating a Customer Experience platform that encourages individuals to return to your brand and bring their friends and families should be the over-arching goal for any brand. However, it can be challenging to prescribe which moments along the path-to-purchase may be tainting the overall experience and leading to the creation of more detractors. Adding the NPS® question into your survey platform and making the appropriate conclusions from the data collected can serve as a foundational difference to your brands Customer Experience, and overall growth potential.
Net Promoter Score FAQs
What is the NPS philosophy, and why should brands adopt it?
The NPS (Net Promoter Score) philosophy focuses on measuring customer loyalty by asking how likely they are to recommend your brand. Adopting this philosophy helps brands track customer satisfaction, identify promoters and detractors, and improve overall customer experience.
How can adopting NPS benefit a brand?
Adopting NPS helps brands understand customer loyalty, improve service quality, and foster long-term customer relationships.
What are key steps to successfully implement NPS?
Key steps include regularly collecting NPS data, analyzing feedback, and acting on insights to enhance customer experience.
Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
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