{"id":16401,"date":"2019-02-18T12:27:29","date_gmt":"2019-02-18T12:27:29","guid":{"rendered":"https:\/\/www.proprofs.com\/c\/?p=16401"},"modified":"2024-08-12T08:08:24","modified_gmt":"2024-08-12T08:08:24","slug":"nps-advantages-for-my-business","status":"publish","type":"post","link":"https:\/\/www.proprofssurvey.com\/blog\/nps-advantages-for-my-business\/","title":{"rendered":"What are the Advantages of NPS to My Business"},"content":{"rendered":"\r\n<figure class=\"wp-block-image\"><img decoding=\"async\" class=\"wp-image-36616\" src=\"https:\/\/www.proprofssurvey.com\/blog\/wp-content\/uploads\/2019\/02\/What-are-the-Advantages-of-NPS-to-My-Business.jpg\" alt=\"What are the Advantages of NPS to My Business\" \/><\/figure>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">Customer retention, customer loyalty, customer engagement, phew, these words are all I read about these days. One thing that tends to link all these factors together is <a href=\"https:\/\/www.proprofssurvey.com\/net-promoter-score-survey\/\">Net Promoter Score<\/a> or NPS. Ask any customer support expert, and they\u2019ll go on about how <a href=\"https:\/\/www.proprofssurvey.com\/blog\/good-net-promoter-score\/\">good NPS<\/a> is and how companies are adopting it and using it to their advantage. But for a beginner like you and me, how does NPS benefit us?. I would like to explain how <a href=\"https:\/\/www.proprofssurvey.com\/net-promoter-score-survey\/\">NPS surveys<\/a> can be beneficial to you and your business in this article.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Net_Promoter_Score\"><\/span><strong>Net Promoter Score<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">Before we start off with how NPS can help you, let us just refresh what we already know about this system. Created in 2003 by <strong>Fred Reichheld, Bain &amp; Co.<\/strong> in collaboration with Satmetrix, NPS is a metric to measure customer loyalty. It does so by asking the customers one simple question: <strong>\u201cHow likely are you to recommend this product or service to a friend or a colleague?\u201d<\/strong> Customers can rate you on a scale of 0-10.<\/span><\/p>\r\n\r\n\r\n\r\n<p><strong>Based on how they rate you, the customers are divided into three categories:<\/strong><\/p>\r\n\r\n\r\n\r\n<ol class=\"wp-block-list\">\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Promoters:<\/strong> Those who rate you 9-10<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Passives:<\/strong> Those who rate you 7-8<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Detractors:<\/strong> Those who rate you 0-6<\/span><\/li>\r\n<\/ol>\r\n\r\n\r\n<center><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/I4g1BfJVlgQ\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/center>\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">Your NPS is then calculated as the difference between the percentages of promoters and detractors.<\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">This is the gist of NPS in short. So <strong>how can NPS be advantageous to your business?<\/strong> Let us look into that:<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Helps_Reduce_Churn_Rate\"><\/span><b>Helps Reduce Churn Rate<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">NPS is great when it comes to identifying problematic areas. Take a look at the past responses of customers who left or thought of leaving to identify problematic areas in your sales process. Think of NPS as an opportunity to start a conversation with the customer rather than just a number in your sales process. <\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">Use it to learn all the issues faced by your customers, be it regarding the product or the service. By focusing on identifying the problems faced by customers, you not only smoothen the process for future customers but also increase your chances of retaining your old customers.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Helps_Refine_Product_Development\"><\/span><b>Helps Refine Product Development<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">Every artist loves their creation. You look at any artwork and chances are you may or may not like it. You ask the person who spent their time creating it, and they\u2019ll tell you how much they love it. The same applies in the industry too; as a product developer you love what you create, and this could lead you to overlook some things due to personal bias. NPS provides you with feedback from your users, allowing you to see it from their perspective. <\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">It also provides you with suggestions about features that the customers would want, whether it is possible to implement them or not is something you would have to decide. People appreciate it if their feedback is implemented, so you can create an event calendar to show them that their voice is heard.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Increase_Customer_Loyalty_and_Engagement\"><\/span><strong>Increase Customer Loyalty and Engagement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">Before saying anything about this, I\u2019m just going to list down some stats by\u00a0leading organizations<\/span><span style=\"font-weight: 400;\">:<\/span><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>After having a positive experience with a company, 77% of customers would recommend it to a friend.<\/li>\r\n<li>It is anywhere from <a href=\"https:\/\/hbr.org\/2014\/10\/the-value-of-keeping-the-right-customers\">5 to 25 times more expensive<\/a> to acquire a new customer than it is to keep a current one. Need I really say more? The more your customers engage with you, the more loyal they are. You can also add loyalty rewards programs to your sales process to <a href=\"https:\/\/businessandpower.com\/what-is-a-rundown-in-sales-what-is-it-and-how-can-you-use-it\/\">boost recurring sales<\/a> and brand loyalty.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Build_Meaningful_Relationships\"><\/span><b>Build Meaningful Relationships<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">Set aside the whole focus on profit margins and ROI for a second. In this hyper-competitive age, your relationships with your customers matter as much as their purchases. NPS is a single-question solution that can lay the foundation for a strong relationship with them. It grants you access to their insights as to what sets you apart from your competitors. Get into a discussion with your customers and gain insights that would normally be unavailable to you. <\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">This will also help you create more brand advocates. Word-of-mouth is one marketing avenue for which you don\u2019t have to spend any money; you just reap the rewards of it. Don\u2019t leave this channel untouched, personalize the communication you have with your customers and be their trusted associate, not their salesperson.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Set_Benchmarks\"><\/span><b>Set Benchmarks<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\"><strong>\u201cYou are your worst enemy\u201d<\/strong> \u2013 every inspirational movie ever made drills this into you. I disagree with this slightly, <strong>\u201cyou are your strongest competitor\u201d<\/strong>. Evaluate your NPS scores over time and set a benchmark for yourself. Then, spend the next year or quarter trying to beat that score. If you can\u2019t, that means you\u2019ve dropped the ball and you need to evaluate and <a href=\"https:\/\/salessimplify.com\/blog\/implement-sales-process-automation\" target=\"_blank\" rel=\"follow noopener noreferrer\" aria-label=\"undefined (opens in a new tab)\">automate your sales process<\/a>. If you do, you have another target to beat.<br \/><\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">As I\u2019ve mentioned in my previous article, NPS success is not determined by the metric itself, but by the process. Don\u2019t make NPS just about sending out surveys and collecting data, use it to make yourself better.<\/span><\/p>\r\n\r\n\r\n<hr class=\"wp-block-separator\" \/>\r\n\r\n\r\n<p><strong>Read More:\u00a0<a href=\"https:\/\/www.proprofssurvey.com\/blog\/nps-survey-tools\/\">Top\u00a0NPS Survey Software<\/a><\/strong><\/p>\r\n\r\n\r\n<hr class=\"wp-block-separator\" \/>\r\n\r\n\r\n<p class=\"has-text-align-center\"><a class=\"try-btn\" title=\"Try Survey Maker Software for Free\" href=\"https:\/\/www.proprofssurvey.com\/pricing\/\">Try Survey Maker Software for Free<\/a><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Customer retention, customer loyalty, customer engagement, phew, these words are all I read about these days. One thing that tends to link all these factors together is Net Promoter Score or NPS. Ask any customer support expert, and they\u2019ll go on about how good NPS is and how companies are adopting it and using it&#8230;<\/p>\n","protected":false},"author":6,"featured_media":42017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-16401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customer-satisfaction"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Are the Advantages of NPS to My Business? - ProProfs<\/title>\n<meta name=\"description\" content=\"Net Promoter Score is the buzzword over the internet these days? How exactly does it benefit you? 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