If you want to know what people think about your business, the only way to find out is to ask them. And for that purpose, nothing beats good old Net Promoter Score (NPS).
In this episode, we'll talk about using the Net Promoter Score to calculate your customer loyalty index and give you a few tips on what to do if you aren't happy with the results.
Looking for a step-by-step guide to creating a Net Promoter Score survey for your website? Check this out.
Create beautiful email signup forms, coupon boxes, and pop-up surveys for your store with Getsitecontrol.
If you want to know what people think about your business, the only way to find out is to ask them. And for that purpose, nothing beats good old Net Promoter Score (NPS).
In this episode, we'll talk about using the Net Promoter Score to calculate your customer loyalty index and give you a few tips on what to do if you aren't happy with the results.
Looking for a step-by-step guide to creating a Net Promoter Score survey for your website? Check this out.
Create beautiful email signup forms, coupon boxes, and pop-up surveys for your store with Getsitecontrol.
Hi, you're listening to get site control insider. In this episode we'll be talking about net promoter score, the popular customer loyalty index. You'll learn how to calculate your net promoter score, why it is so important to know it, and what to do to improve your results. Stay tuned. How do you make decisions when you are about to make a new purchase? I don't know about you, but I always ask trusted friends and family about their recommendations and most of the time I don't even need to ask. They will tell me according to think jar. 72% of customers will share a positive experience with six or more people, but positive feedback isn't all that is shared. 13% of unhappy customers will share their negative experience with 15 people or more. Your customer's words can mean failure or success for your business despite all the other efforts you pour into it. So how do you know what they think and what they're saying about your business? One way to find out is by calculating the net promoter score. Simply put, a net promoter score is an index ranging from negative 100 to 100 this index measures how much customers are willing to recommend your products or services to others. You'll often see this termed shortened as NPS. Your NPS sheds light on your customer's overall satisfaction level and tells you how loyal they are to your brand. Unlike other benchmarks use to measure opinions about your products or services. Your net promoter score measures overall satisfaction about your brand, not just about a specific product or a single experience they've had with you. By now, you're probably itching to know what your net promoter score looks like. Here's how you can calculate it in three easy steps. Step one, create an NPS survey for your website. If you want to know what people think about your business, the only way to find out is to ask them. The term net promoter score might sound intimidating, but it's actually quite easy to calculate. All you need is a survey with a single question to ask your customers. On a scale of one to 10 how likely are you to recommend us to a friend? You can quickly create this survey by using get site control form builder. It's ridiculously easy. You'll just need to connect, get site control to your website, choose a survey template from the gallery, adjust its copy and decide when it should appear. For example, you may want to survey returning customers only or those who have completed a checkout process or probably you want to display the question right before your visitors leave the website. It's up to you. The entire setup process will probably take you less than five. Then you just activate the NPS survey you've created and it will instantly go live on your website. Step two, categorize your customer's responses based on the responses you get from your customers. You will segment them into three separate groups, promoters, those who chose responses from nine to 10 passives. The visitors who selected seven or eight detractors, the customers who chose any response from zero to six promoters are your most loyal customers. They're the ones who tell their friends and entire entourage about your site and they are by far your most valuable crowd. Passive customers can easily be swayed to switch over to a competitor if given a good enough reason to, but can also be turned into promoters if nurtured in the right way. The tractors are a risky crowd. They've had a negative experience with your brand and are unhappy in some way. Detractors tend to speak out in negative terms about your brand, thus harming your reputation. Furthermore, they also increase customer churn. The percentage of people who stopped doing business with your company within a given period. We'll get back to the tractor and talk about ways to fix relations with them in a few moments. Meanwhile, let's finish the last step and calculate your net promoter score. To do that, take the number of customers from each group and find out what percentage they represent. Then subtract the percentage of detractors from the percentage of promoters. For example, let's say you surveyed a total of 50 customers. If 15 of these customers are detractors and 23 are promoters, this means you have a 30% detractor and 46% promoter rate respectively. To calculate your NPS, you would subtract 30 from 46 and in this case the NPS score is 16 now, what is considered a good NPS score? The quality of your net promoter score depends on your industry and for example, the average for online shopping is 39 for software and apps, it's 28 department in specialty stores, 58 travel websites 16 see how the average varies drastically. Your net promoter score should be at least in the average of your industry or higher. Naturally, some industries have customers that are very difficult to please. For instance, the lowest NPS average is two for internet service providers. Wondering why, think back, how often people say positive things about their internet service providers and you'll see exactly why. On the other hand, online shopping has an average of 39 because people typically love receiving new things and they're likely to share their experience with friends. So if you an eCommerce store, your customers should enjoy making purchases and if they don't, you risk losing out to your competitors. Ouch. For department and specialty stores. People are generally quite happy since these types of stores are very niche down and provide exactly what people are looking for, they have the highest NPS average. If you're in that industry, your bar is high. Why is NPS important? Your net promoter score helps you quantify the loyalty among your shoppers instead of just guessing and when you know exactly where you stand, you can take a proactive action instead of passively waiting for customer churn to increase. It allows you to identify the trend in your customer satisfaction. Is it currently positive or negative? Are detractors increasing and promoters decreasing? If this is the case, something is definitely wrong. Whether there is a problem in the quality of your products or services or lack of customer care, whatever it may be, you have an urgent problem that you need to solve. On the other hand, if your promoters are decreasing while you are passive, customers are increasing. This doesn't necessarily mean that you are making buyers unhappy. However, you are at risk of customer churn. You need to do something to make these passive buyers adopt a more positive view of your business and choose you over your competitors every time. And that brings us to the most actionable part of this episode. Actions to take. Once you know your net promoter score to keep improving your NPS, especially if it is lower than it should be, you'll need to start taking actions. But what can you do exactly? Here's one example. If you make one tiny addition to the survey, an email capture field, you'll be able to reach out to all three groups and nurture them in a way that improves their loyalty. Ultimately raising your NPS every time your score goes up, this means you have more chances of getting referrals from happy customers and more referrals means fewer resources spent on acquiring new customers. Sound good? Well, let's now talk about how you can work with each group of customers to improve your score. Group number one, fixing your relationship with detractors. Detractors are not happy, but that doesn't mean that they will remain unhappy and keep spreading negative words about your business. If you make an effort to change that all detractors want is to feel valued and have positive experience when they decide to spend their money somewhere. One way to handle it is to reach out via email to all detractors and ask them more details about their experience. Make them feel heard and valued. For instance, if they receive a broken item offered to reship them, another one for free. If they had a negative experience with the customer service rep, let them know you will work at improving this and offer them something in exchange a coupon for example, ask them what they would like to see from you specifically in the future. If you think about it, having detractors is not always a bad thing. It's an opportunity to learn how you can improve your business so that future customers get the best products and services possible. Next time to nurture passives into loyal buyers, you already know that passive customers can easily be swayed one way or another. This means they are ripe for the picking, but don't let your competitors harvest them before you can nurture passive customers by giving them incentives so that they would be willing to stay with your brand and eventually become promoters. For example, extend their free trial to give them another chance at experiencing your product. Offer them an option for free shipping after they purchased once from you. Send them coupons via email to thank them for their purchase. There are unlimited possibilities for helping passive buyers fall in love with your brand, but the key just like with detractors is to make them feel valued in a way that they cannot feel with other brands. Finally, promoters, promoters have a capability of generating a constant flow of new customers for you. In return, these customers can become promoters themselves when you continue to nurture them. Before instance, you can implement a referral program only available to buyers after a certain number of purchases. There are so many ways you can compensate your promoters for sending more business your way. Let them accumulate a certain number of points that can be redeemed for free products or a service. Build a tier system that gives certain promoters permanent perks like 10% off everything at all times or free shipping on all purchases. Give them exclusive deals, give them early access to new products before everyone else, and that is just the tip of the iceberg. You don't just want your promoters to feel valued, you want them to feel special as if you couldn't succeed without them. People like being helpful and building genuine connections with others and you have the opportunity to do just that. With those promoters, with a referral network, every promoter can generate more promoters who then attract even more promoters. The possibilities are limitless. However, you need to put in the effort to make these people loyalty. You promoters are not made by magic,
Speaker 2:so are you ready to build a tribe of loyal buyers? Calculating and acting on your net promoter score helps you patch the holes in your customer experience. This will in turn help you maximize the value of each buyer and ensure you minimize customer churn. Remember, you should be calculating net promoter score more. Just once. Check in regularly with your customers to see the changing trends. This is how you will know whether your improvements are working. Maintaining high NPS will require a consistent effort from you, but measuring it doesn't need to be difficult. Go ahead and make the first step forward. Improving your customer relations. Create an NPS survey using get site control. Check out the link in the description for details about the survey setup. M this is it for the episode. Don't forget to subscribe if you want more ideas on improving customer engagement on your website. Thank you for listening. Until next time.