The Importance of Net Promoter Score for Your Business
Net Promoter Score (NPS) is a measure of customer loyalty and satisfaction that is used by businesses to gauge the effectiveness of their products and services.
As a business owner, it's crucial to track the satisfaction and loyalty of your customers. One way to do this is by using Net Promoter Score (NPS), a simple yet powerful measure that can give you valuable insights into how your customers feel about your company.
NPS is calculated by asking customers to rate their likelihood to recommend your business to a friend or colleague on a scale of 0 to 10. Customers who rate their likelihood as a 9 or 10 are considered "promoters," while those who rate their likelihood as a 0 to 6 are "detractors." Customers who rate their likelihood as a 7 or 8 are considered "passives."
To calculate your NPS, you simply subtract the percentage of detractors from the percentage of promoters. For example, if 60% of your customers are promoters and 20% are detractors, your NPS would be 40.
A high NPS is a sign that your business is doing a good job of meeting the needs of its customers and has a loyal customer base. On the other hand, a low NPS may indicate that your business is not meeting the needs of its customers and may need to make changes to improve customer satisfaction.
Usually, for digital businesses it is fairly easy to collect NPS surveys, due to the nature of the service. In contrast, brick and mortar businesses have a hard time collecting digital answers. As a response to this, there are tools like Aiwifi - which allow businesses to share their Wi-Fi network and collect NPS surveys in exchange - becoming one of the fastest and most used tool for Customer Voice strategy implementation.
Tracking NPS can help you identify areas of your business that may need improvement and give you a better understanding of how your customers feel about your company. By regularly monitoring and acting on your NPS, you can improve customer loyalty and satisfaction, leading to increased retention and revenue for your business.