Successful businesses use NPS (Net Promoter Score) data to help them make marketing decisions that build their brand. When you’re building your business, you need metrics and tools that can help you connect with your clients and customers to find out how likely they are to recommend your product or service to others.
What is NPS?
NPS is a metric marketing tool that lets you measure customer satisfaction and loyalty. Customers are asked the question, “How likely are you to recommend our product/service to a friend?”
Customers respond on a scale of 0 to 10, with the results put into three categories:
- 0 to 6 – Detractors. These people are unlikely to recommend your brand to someone else.
- 7 or 8 – Passives. These customers have a neutral feeling about your business.
- 9 or 19 – Promoters. These customers are loyal to your brand and excited about doing business with you.
Your NPS is calculated by subtracting the Detractors from the total number of Promoters. Divide this number by the total number of responses that you received. Then multiply by 100 to reach your NPS.
Your goal for NPS is to be in the positive range. This is a good indication that the majority of your customers are happy with your brand. Another way to look at your NPS is by comparing it to the average in your industry. If you’re below that average, you know that your customer’s experience is falling short of your competitors and that you have some work to do to improve your score.
Net Sentiment
Along with NPS insights, you can use another metric in your marketing strategy. Add net sentiment to your analysis and you can learn even more about what your customers think of you. Your net sentiment is calculated by gathering each online mention of your brand and giving it a positive or negative rating. This includes comments on social media platforms and feedback from online surveys.
The negative percentage of online mentions are subtracted from the percentage of positive mentions for your brand, resulting in your net sentiment score.
Benefits of Using NPS and Net Sentiment
Here are 10 ways that you can utilize your NPS and net sentiment so that you can better understand your customers and grow your brand.
1. Generate more leads
NPS metrics can help you learn more about your customers and what they want from your brand. You can use this information to develop products and services that consumers want as well as generate more leads from both active and passive customers.
2. Benefit from hard metrics
The metrics you get from NPS and net sentiment analysis can help you keep track of your monthly growth and make predictions about where your brand is heading. You can also benefit from these hard metrics by forecasting what products or services are most liked and in demand.
3. Resonate with customers
Your customer’s voice matters and the more you can mimic it in tone and language, the more you resonate with what consumers want. Use this tone when planning social media marketing.
4. Improve customer support
Analyzing NPS results can let you improve customer support. You’ll be able to determine what complaints are most common and be prepared with solutions. A great experience with your business will keep customers engaged and loyal to your brand.
5. Be prepared for potential problems
Your NPS can help you come up with an action plan to deal with problems as they arise. When you’re proactive, you can be ready for common complaints and issues so you can take steps to manage problems. You can quickly work on improving your net promoter score when you listen to unhappy customers.
6. Stay ahead of the competition
A big key to your success is staying out in front of your competitors and giving customers what they want. By reviewing NPS feedback, you’ll be able to benchmark the customer experience and satisfaction against the competition and take advantage of those areas where competitors are lacking. You’ll be able to be more effective in designing and developing new products and services that consumers want.
7. Let customers know you’re listening
You can increase loyalty and build your brand by following up on customer feedback. Consumers want to know that they’re being heard after taking the time to respond. When you send follow up emails you can gain a better understanding of the customer experience and increase loyalty. Also, when customers give you a bad rating, you can turn these negative ratings around by being ready with emails that are responsive to the complaint or issue.
8. See where you stand in the industry market
To build your business and make it a success you need to know where you stand in your industry. As a benchmark, your NPS can help you compare your progress in the market, make strategic decisions, and take steps to improve your position with clients and customers.
9. Understand your rate on investment
Customer retention and satisfaction are important when it comes to measuring your ROI. When you analyze your NPS and net sentiment, and know what customers think of you, you can set goals that are measurable and able to generate the highest return in loyalty and satisfaction.
10. Identify when to upsell
Your established customers are just as important as those you have yet to reach. When you can identify those customers who are already happy with your product and service, you can implement marketing campaigns to upsell. Use the positive customer experience to take advantage of increasing your sales and improving your NPS and brand exposure.
Final Words
There is no single way that you can forecast the success of your brand. What you can do is give customers what they want by understanding their sentiment about your business. Using NPS along with net sentiment you can make smart decisions that play a huge role in business growth. Consistently working towards a better Net Promoter Score means that your customers are happy with your brand and ready and willing to recommend your business to others.
Take a look at the infographic from Chattermill below for a visual summary of these points.
