How to Improve Your Net Promoter Score

Bloomfire Admin
3 mins

Have you ever recommended a company to a friend? Ever discouraged a friend from going with a certain company?

Congratulations, if you were able to answer that question, you understand Net Promoter Scores! A Net Promoter Score, or NPS, is a metric used by marketing teams who are responsible for customer insights, customer support teams, and companies as a whole to assess the loyalty of their customer relationships.

NPS is measured by one deceptively simple question; on a scale of one to ten, how likely are you to recommend a product or service to someone else? The number of customers who would not recommend the product or service is subtracted from the number of those who would, and voila, an NPS.

The scale is typically broken down as follows:

  • Promoters (9 to 10): Customers who are not only satisfied, but enthusiastic, about your product. Most likely, they will continue to purchase and recommend the product to others.
  • Passives (7 to 8): Customers who are satisfied with the product, but not necessarily excited about it. They may or may not recommend the product to others.
  • Detractors (0 to 6): Customers who are dissatisfied with your product or with their experience with your organization. Detractors are unlikely to continue purchasing, much less recommend the product to others.

Some may scoff at such a seemingly simple metric, given the abundance of overly-complex metrics and customer data in existence today, but NPS should not be taken lightly. Research shows that Net Promoter Score is THE leading indicator of growth. The higher an organization’s NPS, the higher the likelihood of outperforming competitors.

So, what can you do to improve your Net Promoter Score? Follow these four best practices:

1. Encourage sharing on social media.

Unfortunately, customers are more likely to share negative experiences on social media than positive experiences, and one angry Facebook rant has the potential to be highly detrimental; in a survey conducted by NewVoice, 58 percent of customers a reported that a negative experience would keep them from ever using that company again. 39 percent said a negative experience would cause them to avoid a company for two or more years.

Encourage your promoters to share their positive experiences by offering your customers a hashtag for Twitter and Instagram, and holding contests that reward customers for social sharing.

2. Learn from your detractors.

Sure, they’re a buzzkill. But chances are, their negative experience is shared by others who did not make it known to you. Use surveys to learn why detractors were dissatisfied with your product or service. If the answer is reasonable, make the changes necessary to ensure that other customers are not having a similar experience and that no prospects are discouraged from moving forward with the buying process.

3. Segment your data.

Not all customers are created equal, and you don’t want to waste any time or resources targeting a segment that will ultimately have no impact on your NPS or ROI. Begin by dissecting your data based on simple demographics like business size, business type, location, etc. Identify which of these segments are most important to the company’s success, which segments are the most satisfied and the least satisfied, and target  your customer marketing resources accordingly.

4. Don’t get hung up on the number.

A Net Promoter Score is a numerical representation of what really matters: the sentiment of your customers. Improve the quality of your customers’ experience with your brand, and you should improve your Net Promoter Score as a result. Read as many comments and reviews as earthly possible. Respond. Engage with your customers on social media, acknowledge their frustrations, and turn their feedback into action.

The Net Promoter Score is not the only customer satisfaction metric your company should be using to gauge the loyalty and satisfaction of your customers, but it’s a great place to start. Measure NPS, act on both positive and negative feedback, engage your customers, and you’re on your way to driving growth and boosting customer lifetime value.

August 30, 2016

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