Net Promoter Score (NPS) is a useful tool to calculate customers’ satisfaction with a business - and, even better, there’s a strong correlation between a good NPS and a strong financial performance. So, let’s take a look at how NPS can boost business!
1. NPS Predicts Financial Growth
A strong NPS indicates happy, loyal customers who will repeat purchases and tell their network how great your offering is - leading to both increased revenue and customer growth.
Businesses that improve their NPS, generally also see an improvement in their balance sheets - so make happy customers your goal and watch your business thrive!
2. NPS is an Opportunity for Actionable Improvement
Gathering NPS data regularly allows businesses to see trends in overall customer experience, as well as revealing areas of the business that are performing well and those that are lagging.
Using NPS data you can set goals for actionable improvement, whether it be bringing underperforming business units up to speed, amplifying an action that customers love to all your locations, or using customer feedback as a staff training tool. The more opportunities you take for improvement across the entire business, the bigger the opportunity for a better financial performance.
3. NPS Measures the Entire Purchase
NPS doesn’t just measure the likelihood that a customer will recommend a product they purchase, it measures the whole purchase experience - the greeting a customer received, the ease of finding what they were looking for, the service offered by sales staff, the size of the queue, the cleanliness of the store, and many more details that make up the customer experience.
Supplementing NPS with follow up questions allows you to pin-point opportunities to improve along the entire customer journey. Identifying areas that are letting your business down can help you keep an edge over competitors, because if you can enhance the customer experience at every point then your customers are more likely to stay shopping with you - and customer retention is more great news for your bottom line.
Now you know that a high NPS is good for your bottom line, why don’t you see if you can improve yours? Check out our e-book Turning Negative Feedback into Raving Fans to see how.