What is NPS and Why Is It Important for Your Company?

What is NPS and Why Is It Important for Your Company?

In today’s social media driven world, consumers, especially Millennials, don’t trust traditional advertising methods. Before buying almost anything, they are far more likely to go online and conduct a full-blown investigation, scouring through user reviews, blogs, and social pages, before trusting a company’s television or magazine ad.

You might be asking, “How exactly does this affect my company?” Well, it means that the old days of producing a great ad are not enough to get customers to buy your product. Customers care about their overall experience. Even if you have a killer marketing campaign, logo, and website, if customers have a bad experience with your brand, you can bet they’re going to write about it and tell their friends with the click of a button. And once those bad customer experience reviews are out there, it can directly impact the number of new customers willing to engage with your company.

While social media has its flaws, it can actually be a good thing for business, because it makes it even easier to collect customer feedback, identify and resolve problem areas, and ensure your customers are so happy that they recommend you to all their friends and family. This is where NPS comes in.

What is NPS?

NPS, or Net Promoter Score, allows you to analyze customer satisfaction and measure the effectiveness of your customer experience efforts. Whether your company uses phone, email, or an online questionnaire to get feedback from customers about their experience, there are many methods that can be used to determine a company’s NPS.

Why is it important?

NPS is not just a number, it’s literally the voice of your customers and how they feel about your brand. No matter the size of your company, NPS is important, because it not only gives you a better understanding of your specific customers’ needs and pain points, but allows you to identify areas of opportunity and ways to improve your product or service.

Consistently surveying your customer base and measuring NPS can also significantly improve customer retention by helping companies evaluate problem areas that prompt customers to cancel or seek a different company. The ability to analyze and improve customer loyalty is so vital, because it’s significantly cheaper to retain an existing customer than to acquire a new one. Plus, long-term customers are more likely to recommend your product or service to friends and family.
How can you improve your NPS?

Improving your company’s NPS is dependent upon analyzing the feedback you’re getting from surveys and data and deciphering what exactly is making customers unhappy. Based on this research, you can make improvements to your website, product, app, customer service, or whatever particular area is receiving negative feedback.

Even though you might have to spend extra time and money adding new services or updating your product, improving customer relationships will increase your NPS, and ultimately help grow your business.

Once you evaluate your NPS data and make appropriate improvements, don’t stop there. Customers’ needs are always changing, so NPS is something companies need to consistently keep in mind to ensure their products and services are relevant and their customers are happy.

Want to start calculating or improve your NPS, but don’t know where to start? Auxillium can help you conduct surveys and analyze the data to see what you’re missing and where you can improve your customer experience.

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