We have now entered industry 4.0 which emphasizes on automation and digitisation. That said, it is now more important for brands to maintain its reputation and market value on the online world which will eventually reflect in the offline market as well. Before understanding why let us see what exactly Net Promoter Score is. In simple words, it is a management tool which lets companies understand its relationship with the customer base. It works as an alternative to market research on customer satisfaction and their loyalty towards a brand by simpler means. Now let’s take a look at what makes it so important that almost a two-thirds of the 1000 fortune companies have adopted this.
Shows Customer Satisfaction and Possibility of Repeat Business
You must try things before you set out to implement them to know what kind of experience you are putting out for your customers with the feedback process. When your customer chooses the measure of how likely they are to recommend your brand to a friend or colleague it shows the credibility of their relationship to your brand. It can be used to note which are the customers who might return for business again.
Unified and Comprehensive feedback
While product reviews and feedbacks that are generally collected by CSAT or CES surveys depend only on single transactions. That is, if you happen to mess up one time, the survey would count it as a negative feedback where as NPS collects data relevant to the overall reputation of the company and not just short-term customer satisfaction. This helps in the long run and in predicting what the future of the brand looks like.
While you thought NPS was all about identifying the loyal customer base but its not limited to just that. A strong Net Promoter Score makes sure that happy customers are backed by a team of happy employees who are constantly motivated to keep everyone happy. Isn’t this a really happy picture now? It should be because this is what paves way for changes and improvements which can only be done according to what the customer needs and this provides the data. This fulfils the ultimate goal of any brand.
Concise and Cost-Friendly
NPS is quick and very simple from the customer’s point of view. All they have to do is answer a simple question which is “how likely they are to recommend this service/product to a friend or colleague?” followed by a couple of optional questions for detailed analysis and self-improvement of the company. Hence, they are concise and speak a lot in very little. From the company’s point of view, the calculation of the results is very simple and can be done using simple arithmetic. Moreover, they go very easy on the pockets and have returns on investment in terms of scope.
Easy to Mark Competition
This is one great thing about NPS. Being a globally recognised management tool, it provides benchmarks of prominent performing names of your industry. This will not only motivate you to perform better but will also give you a platform to learn and develop as well. You could also stay updated with the benchmarks in your geographical location and hopefully stay on the top and set an example.
Track Your Progress
There are various factors that determine the development of a brand and it can only be measured when your company is significantly progressing over time. NPS helps you measure your progress bar from the time you started implementing it, until today. If your progress is not up to the mark, you can take appropriate actions to look where you are going and rectify the mistakes. Not only that, NPS can save a lot of time and resources which are spent on market research for the exact same results that can be easily attained by NPS.
Now you know why the demand for NPS is increasing. Customer feedback is very crucial for the growth of a company and this will not help in retaining the existing customers but also in attracting new ones with new and planned policies in domains that need reform.