Learn How to Win Satisfied Customers with NPS

NPS: What It Is and Why Your Business Needs It

Improving your customer service quality could be the key to boosting your sales strategies. It’s no secret that having satisfied customers is as important as meeting your sales targets. Even with an excellent product, poor customer service can result in losing your customers.

“Statistics show that 85% of customers might leave due to a bad customer service experience.”

For this reason, it’s crucial to use tools that help you measure customer satisfaction and take action to maintain and improve their positive perception of your brand.

How to Measure Customer Satisfaction?

One of the most widely used methodologies to gauge customer satisfaction is the NPS (Net Promoter Score).

NPS measures customer satisfaction with a single question:
“How likely are you to recommend this product or service to a friend or family member?”

Customers rate their likelihood on a scale of 1 to 10. Based on their responses, customers are categorized into three groups:

• Promoters (score 9-10): Highly satisfied customers who are likely to remain loyal and recommend your brand.
• Passives (score 7-8): Neutral customers who are satisfied but not enthusiastic enough to recommend your brand.
• Detractors (score 6 or below): Dissatisfied customers who are unlikely to recommend your brand and may share negative feedback.

Calculating Your NPS: Promoters vs. Detractors

To calculate your NPS, subtract the percentage of detractors from the percentage of promoters. Passives are not factored into the calculation.

For example:

• Promoters: 60%
• Passives: 20%
• Detractors: 20%

Your NPS is: 60% - 20% = 40

NPS scores range from -100 to 100:

• A score above 0 is considered good.
• A score above 50 is excellent.
• A score below 0 indicates room for improvement.

NPS: More Than Just Customer Opinions

While NPS is primarily used to measure customer loyalty, it’s also a strategic tool for business management. Companies with higher NPS scores tend to have better growth trends.

Beyond satisfaction surveys, NPS offers insights into customer relationships and can guide improvements across all business areas.

Ask yourself:
“Are we doing enough to retain our customers?”
Understanding customer sentiment is critical to ensuring long-term loyalty.

How to Use NPS in Your Business?

“77% of customers believe valuing their time is the most important aspect of good service.”
To make the most of NPS, you’ll need digital tools that allow you to:

• Gather customer feedback quickly and easily.
• Maintain a record of all scores, categorized by promoters, passives, and detractors.
• Communicate with customers to understand their experiences and address weaknesses.
• Provide personalized support to resolve issues efficiently.
• Track NPS trends over time to evaluate improvement actions.

Why Customer Satisfaction Matters

A satisfied customer is your best advocate. Keeping loyal customers is up to 7 times more cost-effective than acquiring new ones.

Investing in service quality is not just about sustainability and brand positioning; it’s a proven strategy to drive sales. As Fred Reichheld, the creator of NPS, said:
“The enthusiastic loyalty of customers is undoubtedly one of the factors that most fosters growth.”

If you’re interested in measuring customer satisfaction with NPS and leveraging other digital tools for customer loyalty, contact us for a free consultation!