Having an established business is not just about some customers — it’s about loyal customers who consider you trustworthy! If you don’t have loyal customers, consistency can soon become a problem, you know. It is necessary that you check whether your customers are loyal and do the necessary if you don’t have many of them. If you’re wondering how you can measure customer loyalty, you can stop the queries now. This guide will help you understand how to measure your customers’ loyalty easily and what you can do to keep it in a track of growth. Shall we start with an introduction to the measurement method we’re going to use — Net Promoter Score?
What is Net Promoter Score?
Net Promoter Score, often used as an acronym of NPS, is an established tool to measure customer loyalty in an effective way. Well-constructed surveys are used to collect opinion from customers and then to draw an overall idea about customer loyalty. The survey may consist of multiple questions that seek the opinion users have about your products/services in offer. You can count on Net Promoter Score if you need a standard and worthy way of measuring customer loyalty.
How Is NPS Measured?
Because the method is using surveys, you need to create the surveys first. For instance, you can customers how likely they are to recommend your product/service to a friend or how satisfied they are with the product as of now. Once a huge number of customers have filled out the survey, you can create NPS Score using the accepted equation.
Now, you can create two category of people who answered the survey — the ones who gave a rating of 6 or less and the ones who rated 9 or 10. The first category is called Detractors while other is called Promoters. Find the percentage of both and subtract the Detractors percentage from Promoters percentage. You would have a number as the result, and that’s what we call the NPS Score.
Noteworthy Benefits of Using NPS to Measure Customer Loyalty
Wondering whether you should use NPS Score to understand customer loyalty? We’ve some reasons why it may make sense.
Simple & Quick
When compared to other survey methods, NPS Score is easy to find. You have to ask just one question and the score will be calculated based on that factor.
Easy & Useful
As the business owner, you’ll have an accepted form of NPS Score. It is easy to manage and understand. You can also compare two NPS Scores to understand the total growth.
As NPS Score is based on asking questions, you can use it with different types of business too. Make sure that you ask the right question and get an idea of customer loyalty.
At the end of the day, you receive a static NPS Score that tells you about the current loyalty of customers. It is pure data that you can use for improving your business.
How Can You Improve the NPS Score of Your Business?
Don’t worry if your business received a comparatively lower NPS Score. There are different ways to improve that. Given below are some effective ways to boost the NPS Score of your business venture. Hope they help.
- Promote Your Brand: Depending on the business, you can try print, electronic and digital marketing to promote your brand extensively. Make sure that potential customers do know about your services and products and offer some promotions/discounts/loyalty programs to attract them often.
- Customer Service is an important factor that can make or break the NPS Score. You have to be sure that you treat your customer well, no matter what they come for. You can also offer some benefits like tele-support and individual-focused promotions.
- Knowing Your Customer and what they want is more important when it comes to boosting your NPS Score. It will help you optimize your product/service and associated aspects to meet the commonest requirements. After all, you need to grow according to the market requirements, don’t you think?
Along with these, you can also try maintaining the best quality for your products and services. It’s, after all, a thing that loyal customers can’t refuse.
We hope we have covered everything you want to know about measuring your customers’ loyalty easily and effectively. The simplest idea to improve your NPS Score and thus enhance customer loyalty is understanding what your potential customers need and catering to those needs. We hope our guide helps you take better decisions for your business management and promotion.