What Is NPS and Why Is It Important for Your Business Growth in 2020?

0
Img source: itak.iaitam.org

The business world has drastically changed in the last 20 years. These changes arrived together with the development of Internet technology. Because of this technology, businesses completely changed their way of working. This especially includes things like advertising and communication.

Despite that, customers around the world have different requirements. For example, the patient of the customers is something that had the biggest change. They are not willing to wait for literally anything. For instance, if the upload time of the website is longer than 15 seconds, there is a big chance that they will leave the website. Besides that, they are expecting to get the answers they are looking for as soon as possible.

Let’s make something clear. We are not here to criticize today’s market. We are only sharing the facts that every entrepreneur should know. Anyway, the point is, businesses today look for a wide range of options that would them business growth.

One of the ways to split from the masses in the competitive market is the usage of NPS. Here we will give you a full explanation of what NPS is and why it is important for each business. However, the first thing that we want to tell you is that NPS needs to work for you. In every other case, you won’t have the chance to see the true NPS benefits.

Let’s start with explanations.

What is NPS?

Img source: adeptia.com

Well, NPS is an acronym of the Net Promoter Score. This amazing tool helps businesses to measure customer loyalty.  There is an effective method that this tool is using. First of all, it categorizes customers into three different groups – detractors, passives, and promoters.

When a customer comes to your website, he needs to answer how likely they are. They do not describe their satisfaction with words. They will get an option to express their satisfaction on a scale from 1 to 10. If they vote 10, this means that they would highly recommend your business to people they know.

Remember the three categories that we mentioned? Well, people that give you 8 and above are considered as promoters. Passives are customers that will give you a market between 7 and 8. Finally, there are detractors that are voting 6 and below.

Logically, the promoters are those that have the hugest influence on your business growth. This profile of people does not concern a lot about the price of your products. Despite that, they also have a much higher retention rate which leads to greater margins. Thanks to the NPS results that you get, you can compare your business with your competitors.

There is one simple thing that all entrepreneurs need to remember. We indeed live in a world of modern technology. However, even today, word-to-mouth marketing brings the best possible results. If your previous customers are satisfied, then you can expect the new ones to come. Social proof has a huge influence on business improvements in literally every field.

Why Is NPS Important for Your Business Growth?

Img source: 7geese.com

Okay, here we come to the main part. You now know what exactly NPS is. We believe that everything associated with it sounds interesting. Yet, many entrepreneurs (especially the small-business ones) do not consider this tool powerful. They would rather focus on social media promotion.

Because of that, we feel that you should here the benefits that NPS can bring. Sooner or later, this tool will bring you positive results.

It Gives Business a Big Picture

Well, you probably remember the CES and CSAT surveys. This tool was great for gathering customer satisfaction data. However, this type of data was not relevant. More precisely, these types of surveys were catching only short-term customer satisfaction data. Yet, things are different with NPS. You are getting the customer’s overall relationship with your brand.

It is important to get a big picture and hear the overall opinion of the customers. This includes feedback for your service or product, your social presence, your website, etc. Only then, you can be sure that the feedback you receive is relevant.

NPR Gives Directions

Img source: smartbusinessshow.com

Well, many people still do not understand that NPS is not just one question. Because of that, business owners do not use it in the right way. You will have to ask follow-up questions as well. Only in that way, you will understand why the customers do or don’t recommend your business.

When you know the real reason, things are quite easier. Every entrepreneur in the world makes mistakes. Do you think that brands like Coca-Cola or Nike are always doing the right things? NO! However, they know that the customer’s feedback is the only thing that matters.

That’s why their overall rating of your business will help you make better decisions for the future. You will know which things you need to improve and which things you completely need to change.

NPS is Very Easy

As we said, customers of today are quite impatient. Do you truly believe that they would spend a lot of time on a complex survey? Most of them do not have time to do that.

Well, that is the biggest advantage of NPS. First of all, you need to find a simple way to get feedback from your previous customers. It is something that NPS ensures. They can do that directly from their email desktop or phone. There is nothing complicated.

You Can Track Changes

Img source: talk-business.co.uk

Well, the improvement of your business is a trip full of changes. Let’s imagine that you decided on current changes thanks to previous feedback that you received. However, you can’t say for sure if these changes were good. The only thing you knew is the things that were not functioning very well.

Well, after you make those changes, you can track things over time. You will see if those changes truly had an impact on your business growth. If the customer overall satisfaction remains the same, that means that your changes were not effective.

Do not put yourself under pressure. Thanks to NPS, you will sooner or later find out which changes are the right ones. The patch to success is full of many failures.

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here

56 − 52 =