How NPS survey can improve business revenue generation ?

Rinika
Written by Rinika on
How NPS survey can improve business revenue generation ?

NPS Survey can give your Business a Great Revenue

As a business, what is it that you focus on – Conversions or Revenue? Well, Neil Patel says “Don’t optimize for conversions, optimize for revenue.” Your conversion rate depends on the percentage of website visitors who take action on a service you offer to them. But your revenue will depend on how you market and sell your products or services. From Phil Kotler’s point of view “Marketing has the main responsibility for achieving profitable revenue growth derived from acquiring and retaining profitable customers.”

According to Forrester Research, one of the best ways to drive business growth is to focus on customer experience in 2020.  Customer Experience will tell you,

  • How many consumers like your brand and engaging with it
  • How satisfied they with your products and services
  • How happy customers are with the way you treat them.

The Customer Experience Metrics are the KPIs that involve customers’ input and the business uses these metrics to analyse their business model. One of the most popular and simplest ways to improve customer experience is by implementing Net Promoter Score. It is the first basic step that every business take to understand customer’s point of view of their product.

What is NPS?

Net Promoter Score is a market research metric that transforms the business world by analysing customer experiences to predict your business growth. Why did I say business growth? Because with NPS you will be able to measure the experience of your customers with your products and services and derive survey-based solutions for business development.

64.5% of business state that NPS is their favourite customers experience metric system as it is simple yet effective. Though it is a basic metric system still 80% of the Fortune500 companies look out of NPS Survey as it is simple for the customers to answers as well as it is easily trackable.

The NPS Calculation

You can calculate your NPS using the answer to a key question, using a 0-10 scale:

“How likely would you recommend us to a friend or colleague?”

The respondents of this single question can be grouped to give you an idea about your customers' position with your brand. Respondents are grouped as follows:

  • Promoters (who gives a score of 9-10) are loyal enthusiastic customers who repurchase or refer products, fueling growth.
  • Passives (who gives a score between 7-8) are satisfied but no so enthusiastic customers leading to vulnerability.
  • Detractors (score 0-6) are unsatisfied customers who can defame your brand and impede growth through negative word-of-mouth.
  • Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).

Next comes a follow-up open-ended question that asks you the customer what they like about your brand, what they dislike about your product/service or customer support.

An NPS higher than 50 says that your company has more happy customers than unhappy ones, and a score of 75 or more is proof that customers love your brand and plenty of positive word-of-mouth from their referrals.

How will NPS give you good Revenue?

“Different teams and different executives can have heated debates about your product….Who’s right?  Net Promoter Score is.  It’s the voice of the customer.  If you have a high NPS score, you’re doing something right here, no matter the feature gaps or other issues.  If it’s low — take action, my friends.  Stop being so proud of yourself.  Your customers aren’t.”

Venture Capitalist and Founder of SaaStr ~ Jason Lemkin
So, the question here is, will NPS give you revenue growth? To be precise the answer is YES!

I will give you an example of an award-winning jeweller Taylor & Hart, who grew their business by 2x by making NPS their prime CX metric. The team at Taylor & Hart was able to use this metric to their advantage. As a young company with a relatively tight budget, Taylor & Hart identified the two main customer milestones that are vital to their business:

  1. The moment a customer places an order
  2. And the moment the order is received

About an hour after an order is placed, the customer receives the first ‘service NPS’ email survey where the customer rate the level of service. The company then sends “a product-specific NPS survey 40 days after purchase asking for customers’ feedback. Taylor & Hart can process every piece of customer data using the simple NPS data, derive conclusions and use it to their advantage. By tracking NPS as their 'One Metric That Matters', Taylor & Hart was able to keep growing their business at an impressive rate. 

Through Net Promoter Score, you can obtain a "big picture" view of where the company is trending. NPS can also help you to personalize and prioritize your marketing efforts according to the replies that you receive. You can use NPS as a better marketing result and a growth booster for your business.

  • With customer data of what part of your services/products they like, you can take actionable insight to craft better marketing campaigns that focus on those aspects to get the interest of potential clients faster.
  • If you’re losing clients, you can find out exactly why that is happening, and what actions you must take with your next marketing campaign to reduce churn rates.
  • Use open-ended NPS questions to know about customer pain points and the improvements needed. A better product leads to better sales and growing revenue.
  • With NPS you can get an idea of how many paying customers are likely to purchase from you again. This will give you insights into your business growth.
  • Use Detractors’ Feedback to Improve Your Brand Image

Since you will get to know how your customer feels about your product/service, NPS can be an excellent way to grow your business and generate revenue. You can establish a direct, clear line of communication with your customers, giving you the exact information you need to make your brand much more appealing. So why wait, join us at HappyAgility and use our NPS system absolutely free. With us

  • Identify your most important customer milestones
  • Collect customer data using NPS and understand your customer satisfaction as well as pain points.
  • Use our analytics-based software to analyze this data and build a roadmap to improve customer experience
  • Continue tracking your NPS while finding ways to improve it.

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