Have you heard about the Net Promotor Score (NPS)?
In this article, we look at the NPS and how to use surveys to gauge customer loyalty.
Defining the NPS
This is a tool you can use to gauge the loyalty of your customer relationships. The score is based on the responses to one question: “How likely is it that you would recommend our company/product/service to a friend or colleague?”
The scores are created like this:
- Promoters have a score of 9 to 10 (on a 0-10 scale) and are likely to buy more and recommend you to others.
- Those with a score of 0 to 6 are called Detractors and aren’t considered value-creating customers.
- People who respond with a 7 or 8 are called Passives, and they fall in the middle.
You calculate the net promoter score by subtracting the Detractors from the Promotors. (Passives count only towards your total of respondents which decreases the percentage of Detractors and Promotors.)
Using a Survey
A customer survey is a great way to measure customer loyalty and your NPS.
When you use a survey, you can quickly tell exactly how your customers view you.
You can then use your results to enhance your business and increase customer loyalty.
Follow these four steps when using surveys to gauge customer loyalty:
- Create a survey that asks customers how likely they’d be to recommend your company on a scale of 0-10.
- Analyze your data using the NPS scale mentioned above.
- Reach back out to the customers who expressed the most loyalty towards you. Continue to nurture them through your marketing channels to increase the likelihood they’ll be your brand advocates.
- Follow up with customers who are the least likely to recommend you (or not at all) to find out what you can do differently.
Are you currently using the NPS to determine your company’s rate of customer satisfaction? Have you thought about sending a survey to gauge customer loyalty?
Because your relationship with your customers is so important to your growth and retention rates, it’s a good idea to check in and see just what they’re thinking. (tweet this)
Customer loyalty is key to your business growth. Loyal customers shop with you again and again. They are your brand ambassadors.
Measure your company’s customer loyalty through a survey to learn how well you’re doing or where you can improve. This is a key indicator of potential growth.
Are you ready to get started with your free Survey Town trial? Start with your free account today, and you can upgrade at any time.