Net Promoter Score is a metric that researchers have found provides a good reliability indicator for bottom line growth for a company. Unlike long surveys to measure customer satisfaction it focuses instead on loyalty usually as “How likely are you to recommend this service to a friend?” This scale tends to use a 0 through 10 rating system and those who are between 9 and 10 are seen as the loyal brand ambassadors. Research shows these people make up 80% of referrals, and that they are much more likely to return for a purchase. These people also actively engage with the company sharing ideas and lowering costs since expense of acquiring a new customer as opposed to keeping an existing one are nearly 5X higher. The goal of Net Promoter Score is to decrease the number of detractors which are customers that are unlikely to re-purchase from you and will engage in negative referral thus increasing the cost of customer acquisition. B2B companies adopting the Net Promoter Score have seen on average a 23% increase in revenue growth. By reducing customer churn by just a small amount companies can realize higher growth. It’s generally accepted that the cost of acquiring a new customer is around five times as much than keeping an existing one satisfied and 65% of an average businesses revenue comes from existing customers. With just a 10% reduction of churn rate a business can realize significant growth. Companies with high levels of detractors may find themselves in a race against time as they may reach a point where their churn rate becomes greater than their ability to acquire new customers and enter a period of decline.
The second important part of the Net Promoter Score is the why. This is especially important for detractors, what part of the customer journey let them down? Was it a bad customer service experience? Poor product quality? A lack of some features they expected? Identifying these issues can help you address them and at least turn them into passive customers. Likewise understanding what makes your promoters love you is key, since you can double down on those efforts in order to keep them locked in and bring new people in as your loyal and engaged customers.
If you’re interested in using NPS or a similar customer satisfaction metric for your organization there are several services that provide the necessary tools and reporting.
Allows you to send customizeable email surveys either in one batch or over time. Supports 3rd party integrations and has plenty of reporting and trend charts.
Pricing: Free for 250 surveys and go to $2,500/month for a complete enterprise solution.
Platform is especially designed for mobile devices and sends emails for net promoter ratings. Positive comments can be published directly on your website to help give social proof (an important and proven way to increase conversion rates).
Plans from $0 a month for 100 surveys to $499 for 10,000 surveys.
More than an net promoter system Medallia combines in the moment feedback, with after email surveys, customer care comments and even social media comments from users. It combines this with financial information to present a clear picture of what is going on and what actions to take in order to increase scores and revenue.
In a more basic form you can certainly send out a survey using SurveyMonkey or SurveyGizmo in order to acquire the data but you’ll want to make sure you do it on a regular basis and keep good track of the results.