You may have heard the term net promoter tossed around in business meetings, on marketing blogs, and while networking. Don’t stay out of the loop. Here you can find everything you need to know about this unique management tool. Take a look at what it is, as well as why it matters so much in today’s business environment.
What is the net promoter score?
Net promoter, or the net promoter score, is simply a management tool. Businesses use it to determine the level of their customer loyalty. The metric was developed several years ago, and has since been adopted by more than two thirds of Fortune 1000 companies.
How does it work?
To calculate your net promoter score, you simply ask your customers a single question: On a scale of 0 to 10, how likely is it that you would recommend this brand to a friend or colleague? Respondents who score 9 to 10 are then grouped as promoters. Those who score 7 to 8 as passives. And those who score 0 to 6 as unhappy customers. By subtracting the number of detractors from the number of promoters, you get your net promoter score. If you have a low score, you have a low customer loyalty. A high score means you have loyal, happy customers who are making a lot of purchases and telling their friends about your brand.
Why is it a valuable tool in today’s business world?
The net promoter score is an excellent indicator of your customer loyalty. But more than that, it can be used in a variety of ways to give you feedback about what’s working and what’s not. Here are a few reasons it’s important in today’s business world:
It’s scalable.
You can use the net promoter score to look at brand loyalty overall. Or, you can look at customer loyalty toward individual products. This gives you flexibility concerning what you’re measuring, allowing you to be as particular or as broad as you need.
It’s easy to administer.
Because the question is so simple, you can easily gather information via email or other survey methods, make tweaks to your brand, and then do it again without bothering your customers. Because it’s a numerical scale, it shows you as concretely as possible whether you’ve improved.
It puts the customer first!
In today’s day and age, what the customer wants matters. The net promoter score takes this into account, asking your customer base straightforwardly: do you like this brand enough to promote it for us? Because today’s world is also a world in which customers share what they like, it’s essential that your customers don’t just like your products, but that they like them enough to share them on the multitude of platforms available today.
Want to use the net promoter score to advance your business?
At Safeguard, we offer a variety of business solutions tailored to fit your needs, including implementing a net promoter survey. Interested in giving it a try? Call to talk with one of our consultants today!