3 Ways To Profit From NPS

When it comes to customer surveys, it doesn’t get much more powerful than the net promoter score (NPS). Your NPS is an integral part of gauging customers’ satisfaction with your company. You can profit from NPS, and it can be used in countless ways to improve your customers’ overall experience.

You can find your score by asking customers how likely they are to recommend your company to friends or colleagues. The question prompts customers to respond on a scale of 1 to 10. (Those who rate their responses between 1 and 6 are considered detractors. Customers who rate between 7 and 8 are considered passive. Others still who rate a 9 or 10 are considered promoters. Each group has its own significance in making sense of your feedback.)

via Net Promoter Network

Companies with a strong sense of their NPS can channel that information into a more positive customer experience. Of course, a more positive customer experience often also equates to a larger profit.

A good start to processing your results is to consider asking respondents why they chose the answers they did.

After a respondent chooses their rating, you may want to also ask why they chose the number they did. You may also want to ask how your product or service could be improved for next time. A surprising number of respondents will be happy to expand on the reasons behind the number they chose. It’s especially simple because it’s an extension of the initial NPS question, which they’d already mentally committed to answering. Your company can find vital information within those open-ended responses. Among other things, they can illuminate which aspects of your product or service customers liked or didn’t like. You can use key information like this to make your customers’ experience better.

Of course, that’s just one of the many ways your NPS results can help your company grow. Below, three ways to profit from your NPS.

1) Ask Promoters For Referrals

When customers identify themselves as promoters by selecting a 9 or 10 on the survey, they’re providing valuable information. These customers have clearly indicated that they’d likely recommend your product or service to a friend or colleague. You may want to consider asking them to do just that!

Amir Noorani, COO of Dr. Cell Phone electronic repair store, found this out firsthand when he began asking customers how likely they’d be to recommend the company to a friend. “Your customers are the lifeline of your business,” Noorani told Praiseworthy. “Your referral and repeat business should make up the majority of your customers.”

Positive feedback, especially with the help of an excellent front line team, can lead to an increase in referrals. This, of course, can lead to an increase in profit. With feedback, employees can also better fine-tune their approach to requesting referrals from customers.

You might also consider asking these customers’ permission to directly reach out to people in their lives who may be in need of what your company has to offer. Promoters who strongly believe in the value of your business just might be more than happy to oblige!

2) Use NPS To Bring In More Positive Reviews

Because NPS is derived from a single short question, customers are inclined to be willing to take the time to respond. This makes for a higher instance of survey responses, which creates a greater well of authentic, useful, and positive reviews for your company to build upon. That, in turn, helps increase your discoverability. Of course, as you begin to implement customer feedback into your customer experience, the rate of positive reviews you receive is also likely to increase based on those improvements alone.

Following up with those satisfied customers is a great way to both directly and indirectly grow your business. When you follow up, you may consider asking those customers to share why they ranked the company so highly. You might also consider simply letting them know that you appreciate their response. When you connect with customers who reported having a great experience with your company, you build goodwill on both sides. You’re also creating a positive experience for your employees. After all, team members are likely feel extra valued in knowing that they brought joy to their customers.

Kevin Etheridge, Director of Sales at Solid Wood Cabinets, saw a positive increase with the help of NPS and other important customer survey questions. “Praiseworthy feedback that we get is a constant reminder that ultimately, we’re here to serve the customer,” Etheridge says. “It’s all about productivity and sales and satisfying customers.” Letting customers know you were delighted to receive their review, and using the reviews to make things better, is always a positive.

3) Follow Up With NPS Detractors To Reduce Churn

NPS provides you with a clear indication of who your detractors are. If customers respond to any follow-up questions, you may also be able to determine why they are detractors. This can help you turn a would-be dissatisfied customer into a customer who feels valued. It may also help you pinpoint customers who are leaning toward dissatisfaction but are still open to having their minds changed.

“Praiseworthy allows us to follow-up with our NPS detractors, and save them,” Manny Arora, CEO of IM Wireless, explains. “If it weren’t for Praiseworthy identifying these detractors, we otherwise would not know they were at-risk customers.”

NPS creates the opportunity to follow up with these customers to leave a more positive impression. Even if such exchanges occasionally still result in churn, you have a chance to turn them into churned promoters. The key is in having a method in place to use churn to help your company succeed—and NPS can help you get there.

When used the right way, NPS is an important path to increasing your company’s profit. Knowledge is power, and a system like Praiseworthy can help you access that power by helping you gauge your NPS and other important aspects of customer feedback.

NPS is important to understanding customer feedback, but simply asking customers to respond to an NPS question is merely the beginning. It’s all about knowing how to use that data to your advantage, to help your company grow and to better connect with your customers. When you provide a great customer experience, your whole business benefits.

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