What is NPSAnd how we use Net Promoter Score ™ to measure & increase customer satisfaction?
If you want to work with a company with many man-years of experience running Net Promoter surveys that improve your customer advocacy quickly and at low cost, VIRTUATell, using our Synaptum automated omnichannel surveys can do that in weeks rather than months.
Because we automatically collect feedback on every customer contact channel and in real-time, Improved scores are delivered to our clients quickly and efficiently because;
- Feedback can be collected every time a customer contacts you
- Feedback is real-time so you can act on it fast, if there is an issue
- Our unique NPS methodology covers every channel including the difficult telephone channel
- Results are accessible to everyone which is proven to create buy-in and staff engagement
So, ask yourself;
- Do you know what proportion of your customers would recommend your product or services to their friends?
- Does this number outweigh those people who have had a bad experience with your company?
- Are the results consistent at every point of the customer journey?
- Does everyone facing a customer, know their NPS score and in which direction their score is going?
Who says so?
Don’t just believe us, UK research by Dr. Paul Marsden of the London School of Economics published “Advocacy Drives Growth”, which in turn builds on extensive research in the US by Frederick F Reichheld, consultant to Bain & Co. It showed that these indices worked because they are based on the fact that in business, word of mouth is well recognised as a valuable sales driver for sales growth The research found the following:
- Companies enjoying higher levels of word of mouth advocacy grew faster than their competitors
- Companies suffering from low levels of word of mouth advocacy and high levels of negative word of mouth grew slower than their competitors.
- In monetary terms, for the average business, every 1% increase in word of mouth advocacy (using the Reichheld methodology) correlated with an £8.82m increase in sales. In terms of percentage growth, a 7% increase in word of mouth advocacy, corelated with a 1% increase in growth.
- A 1% reduction in negative word of mouth would lead to £24.84m additional revenues; every 2% reduction in negative word of mouth correlated to just under 1% growth (a 1% reduction = 0.414% more growth).
What is NPS?
Wikipedia details are here; https://en.wikipedia.org/wiki/Net_Promoter
To calculate the Net Promoter Score your customers are divided into three groups depending on their scores following a field visit or a call to your customer service department: There are ‘Promoters’ who are loyal to one brand and enthusiastically encourage their friends and work colleagues to use your business.
Some are ‘Passive’ consumers whose custom can be courted by special offers and lower prices. And finally, there will be ‘Detractors’ – who have had a bad experience with the company that has not been rectified – who will dissuade those they know from shopping with you.
The more Promoters you have in comparison to Detractors, the higher your Net Promoter Score will be. If you would like to increase your NPS score, speak to our Insight team and we will show you how you could have a 15%+ increase in only 6 weeks.
Use VIRTUATell and the Ultimate Question to grow your business!
Net Promoter, Net Promoter Score and NPS are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.