Reasons for using the Net Promoter Score every day

Of course, there are many measures you should use to measure your organization's performance. But one of the most powerful, customizable metrics is the Net Promoter Score.

You are most likely already using NPS satisfaction surveys. If this is not the case yet, you should start incorporating the NPS into your daily routine today.

Why is the use of NPS surveys so important?

They align your team

According to a 2017 study, 67% of US employees said they were not engaged or actively withdrawn from their job. This is a good cause for management concern, especially if the company is expected to grow rapidly.

Set a clear goal for your team and remove any obstacles standing in the way of achieving that goal. A clear focus is essential to building both a successful customer success team and an enduringly successful business. When your team is aligned around a shared mission, strategy, and quarterly goal, you are more likely to be successful.

Setting goals is easy for many departments. Marketing teams can set ideal customer acquisition metrics. Engineering teams can target launched products. But a lot of what customer success teams do is qualitative.

Of course, you can track the number of calls made, call time, revenue, or positive customer reviews, but these metrics are individualistic and don't reflect the contribution of the entire team. They create incentives for employees to compete against each other instead of working toward a common cause.

When you introduce NPS surveys, your team gets a common focus:

• The increase in NPS

As a manager, you can ask your employees every day:

"Have you gotten every customer today to recommend our company to a friend or colleague?"

By making NPS a key metric for your customer-facing teams, you will all focus on that goal, and they will aim for customers to leave with a positive experience in every interaction.

Your team will work more closely together, encouraging each other, celebrating promoters, and doing whatever it takes to reduce critics.

As a direct result, sales will increase, your customers will churn less and be on the right track to building a business with a multitude of long-term, loyal customers.

They quantify word of mouth

The Net Promoter Score has the ability to measure an important segment of your business that is critical to continued growth:

• word of mouth.

Why is word of mouth so important?

Over 92% of consumers say they trust their family and friends more than any other form of advertising. Simply put, this percentage is huge and worth taking a close look at.

When you consider that approximately nine out of ten visitors to your website are influenced by their environment, you should focus on optimizing a stable word-of-mouth pipeline, for example by launching referral campaigns. Make sure to create positive customer service experiences that make both usage and exposure to your brand memorable.

While you can run daily reports on social media or TV ads, it's incredibly difficult to quantify word-of-mouth traffic. There is no direct word-of-mouth metric that can be tracked.

This is where the survey based on NPS can prove to be useful.

You can use this metric on a daily basis to measure your word of mouth performance. As you create more promoters, your word of mouth machine will automatically grow.

If you get more critics in your surveys, the development will slow down. It's important to note that there are other variables at play here, but as a Customer Success Manager, you should look into the overall trends of your NPS over time.

Recommended reading: With a clear customer advocacy strategy, you can turn your Net Promoter Score into a valuable marketing tool. Our blog article “How to turn NPS feedback into customer reviews, testimonials and other recommendations” deals with the implementation.

They make customer loyalty measurable

66% of US consumers admit to spending more on brands they are loyal to.

However, there are two problems with customer loyalty as a performance indicator for a business:

• It's difficult to measure.
• She's always swaying.

How do you measure customer loyalty?

Well, you could measure several data points reflecting the success of loyalty efforts:

• Repeat Purchases:
  The number of times a customer returns and buys a product from your company
• Average order value:
  how much (on average) a customer spends each time they visit your website or business.
• Churn Rate:
  The percentage of your customers or subscribers who cancel or don't renew their subscriptions during a given period.

You could also consider the NPS.

Measuring NPS daily shows you the likelihood that your current customers will recommend other customers. In short, it gives you an overview of your loyalty performance - are customers fans or even better brand ambassadors?

Reading recommendation: Sometimes it's the little things that make the difference in delighting a customer. The blog article “The Net Promoter Score and the Thank You Page” shows one form of implementation.

They provide a benchmark for customer quality.

Every day at a company meeting you will receive reports from different areas of the company. Every manager is responsible for providing a key figure or two about the health of their department.

Let's consider a SaaS company as an example. Key SaaS metrics in the team report likely include:

• Monthly recurring revenue
• New attempts
• cost per acquisition
• churn
• Exchange rate
• ad spend
• NPS

The first six items in the list above are indicators of your sales, customer acquisition, and profitability.

But they don't provide a measure of customer quality. This is why NPS should be included in daily reports – as a measure of customer quality alongside quantity.

Without keeping an eye on it, you would be wasting marketing budget and time without knowing which customers you are acquiring with it. The NPS helps to clarify whether these customers are the right customer types for your product.

If they work with the results and adapt your actions accordingly, you will see a significant number of supporters and few critics in the future.

If faced with the opposite case, there is a problem.

Reading recommendation: "The Power of NPS and Customer Feedback: Driving Business Success" - This article delves into the significance of NPS and customer feedback, exploring their impact on business success.

They identify areas for product improvement.

When you create any product, be it digital or physical, collecting customer feedback is essential. In technology companies, engineers and designers are looking for real-time customer feedback loops.

The NPS metric helps identify product improvements on a daily basis and make improvements actionable.

The Net Promoter Score helps you identify negative side effects of updates and make real-time changes to your product.

If there's a product issue that causes customers to give you and your business a bad review, you can quickly see it in your NPS score.

You can collect customer feedback related to the product and use the data to customize your own product roadmap.

They are user-friendly and easy to adopt.

The beauty of NPS is that it's a survey with just one key question.

You don't make your customers spend 10-20 minutes filling out a questionnaire. Rather, just ask them to rate their experience and then provide additional comments if desired.

This quick and easy process makes NPS an efficient medium for data collection because it achieves a higher completion rate than traditional surveys and is less expensive than conducting focus group surveys.

When using an NPS tool like Callexa, you have the option to set up the customer feedback survey directly on your website. With our tool you get the opportunity to establish the NPS survey at every point of the customer journey to trigger a reaction, evaluation and feedback.

This gives you valuable information about the different phases of the customer experience.

Despite being a very simple tool, NPS is incredibly powerful, especially when used on a daily basis.

Start today with your first NPS survey. With our free Callexa tariff "Free" you can already ask up to 50 recipients about their satisfaction and collect valuable feedback.

Reading recommendation: If this article helped you and you would like to find out more about the Net Promoter Score, continue reading here: “The Net Promoter Score – Basics and Areas of Application”