March 12, 2012

Do You Know Your Net Promoter Score?

Net Promoter Score, or NPS, is gaining traction as a way for companies to identify customer loyalty by simply asking one question:

 

Would you recommend a company to a friend and/or colleague?

 

Using only one question in a survey may seem like a novel approach, especially since most companies typically use far more than one question in their surveys. However, I think asking this one question really brings focus to the age old way people typically use in deciding who they do business with – using word of mouth recommendations from people they know and trust. Asking only one simple question not only makes it easier and more likely for customers to respond to the survey, it gets right to the point of determining whether a person thinks enough of a company to recommend it.

 

While the NPSscoreis certainly not the only way to measure customer loyalty, it certainly provides a glimpse into how customers view a company. Most of the companies rated with a high NPS have these traits in common:

 

Follow a customer-centric philosophy and go out of their way to provide value to their customers with high quality solutions and services.

Utilize in-house resources in their customer support functions, typically staffed by long-tenured product experts.

Make these experts available to their customers when they call for assistance.

 

It seems there are many benefits of a high-NPS rating – both for the highly rated companies and for their customers. Here are a few of them:

 

Customers feel their needs are either met or exceeded, which leads to an increase in satisfaction and customer loyalty.

Companies develop a repeat customer base that not only continues to buy from them, but also recommends them to their co-workers and colleagues.

Customers gain quick and consistent access to product experts. No one wants to call into a support desk and quickly realize they know more about the product then the person who answers the phone.

 

I welcome your thoughts on this topic and I am curious to ask if you know your NPS score and if you know the NPS score of those companies that you do business with?

 

About The Contributor:
Extreme Marketing Team

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