22 February 2023
CEO of Acanthis
Net Promoter Score (NPS) is an important metric that is often overlooked. NPS is simple yet effective way to measure customer loyalty and satisfaction. Quite simply, an effective way for businesses to gauge how likely their customers are to recommend their product or service to others.
NPS isn't hard to calculate and there are various tools like SurveyMonkey that you can use to survey your customers.
To calculate NPS, businesses typically ask customers to rate how likely they are to recommend their product or service on a scale of 0 to 10. Customers who rate 9 or 10 are considered "promoters," while those who rate 7 or 8 are considered "passives," and those who rate 0 to 6 are considered "detractors." The NPS is then calculated by subtracting the percentage of detractors from the percentage of promoters.
NPS is important for several reasons. First and foremost, it provides a simple and easy-to-understand metric that can be used to measure customer satisfaction and loyalty over time. By tracking NPS with Acanthis, businesses can identify trends and make changes to their product or service to improve customer satisfaction and loyalty.
NPS is also important because it can be used as a benchmark to compare against other businesses in the same industry. This allows businesses to see how they stack up against their competitors and identify areas where they need to improve.
Another benefit of NPS is that it can help businesses identify their most loyal customers, or "promoters." These customers are more likely to recommend the business to others, which can lead to increased word-of-mouth marketing and customer acquisition.
In addition to identifying loyal customers, NPS can also help businesses identify areas where they need to improve. By focusing on addressing the concerns of detractors and passives, businesses can improve customer satisfaction and loyalty, which can lead to increased revenue and profitability over time.
It is important to note that NPS is just one metric and should be used in conjunction with other metrics to gain a more complete picture of customer satisfaction and loyalty. Hey, there's an app for that!
By tracking NPS over time and taking action based on customer feedback, businesses can improve customer satisfaction and loyalty, which can lead to increased revenue and profitability over time.