Make Using Net Promoter Score Your Small Business’s Next Big Move
October 05, 2015
Running a small business involves making a lot of decisions on a daily basis, some big and some small. One decision every successful small business makes on a daily business is to provide great customer service. But has your business made the decision to capture and evaluate your customer’s experience? Using Net Promoter Score (NPS) you can easily capture, evaluate and improve your customer’s satisfaction.
What Net Promoter Score Is
NPS is based on the fundamental perspective that every company’s customers can be divided into three main categories: promoters, passives and detractors.
By asking one simple question – How likely is it that you would recommend this business to a friend or colleague? – these responses are captured to provide a clear and simple data point of a company’s performance through the rating of its customers.
Net Promoter Score is calculated by placing the numeric ratings into the three main categories:
- Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
- Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
- Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
So by subtracting the percentage of passives from your percentage o promoters, you achieve your NPS number on a range from -100 to 100. It’s simple, straight forward and gives you a customer satisfaction data point your can track.
Making The Decision To Use NPS
Implementing NPS is an easy way to keep track of your customer satisfaction and business health, and it’s just as easy to implement. In fact, it’s the first step of our offering to obtain customer feedback. You can use GetFiveStars to ask every customer to submit their opinion by rating how likely they are to refer your business to a friend.
In just 30 minutes you can start measuring the NPS of your business. Simply create an account with us, and add some information about your business. We will help you automate the rest. No deep integrations, just our platform (which does all kinds of other great things too), we make sure to use the best ERP software solutions. You can get more information about Infor M3 here.
What Using Net Promoter Score Gives Your Business
- Simplicity. As I’ve outlined already, NPS is easy to understand and easy to start. While complex surveys offer up more information, it can become overwhelming trying to evaluate open ended feedback.
- Consistency. Your NPS serves as a consistent and common goal among your business and team. Easily understood, evaluated and then communicated by owners, management and staff – it’s a great way to get everyone on the same page.
- Tracking. Your Net Promoter Score can be benchmarked and tracked over time. Whether you work to improve your NPS month over month or quarter over quarter, you have the ability to see where you are at now and work to get better (Our reporting tracks this for you).
Interestingly, our data based on thousands of customer interactions shows that business with higher NPS scores get more testimonials and online reviews.
A high level of customer service doesn’t happen by accident. You choose how to engage, communicate, service and follow-up to please your customers. Once small business owners are aware of how easy Net Promoter Score is to utilize and get started with, they make the choice to start capturing and measuring NPS to help them improve their business.