In our blog posts, we have often talked about online brand reputation management and the importance of it. Here, we discuss something closely linked to ORM. Net Promoter Score – a measure to gauge your brand’s customer relationships. NPS detects how well the customer feels connected to you, how they rate you. It’s simply a mark of how often they actually recommend you to others and so on.
Net Promoter Score or Your Customers’ Definition of Your Brand’s Health?
Net promoter score is essentially a customer loyalty metric. NPS is a metric easily measured on the basis of social data, customer feedback and opinions voiced online and calculated to decide your actual NPS. When you ask your customers a simple question “How likely are you to recommend our brand to family and friends?”, your customers would respond with a score in between 0 to 10. People who rate 9-10 are the promoters, who support your brand, are your loyal customers and would probably spread positive referrals. Respondents who score you from within 0-6 are detractors and these are the customers unhappy with you, they do not create any value for your company. However, the goal of tracking your NPS score and boosting the process with social listening for feedback may help you salvage the situation.
Multinational companies use net promoter score most commonly, to know more about the experience of their customers. An example; a customer rates brand XYZ at 4 on the NPS scale. The form would prompt the customer to explain why they rated XYZ poorly. The customer states that due to the way XYZ’s customer support team is structured, the guidance they needed came late and only confused them and clarified nothing. XYZ now knows the fault lines and what needs to be fixed with their processes, based on the interaction. They can engage further with the customer to offer any possible redressal, gain more insights and change their processes to appease the valued consumer.
If you are thinking NPS is only useful in cases of negative reviews, you are wrong. If a customer rates you high, you can receive further insights as to what they did like about your service/product. Conversing with an already happy customer makes them content and willing to spread a good word about you. Additionally, you now know your strengths to advertise.
Lowering the Cost of Customer Acquisition with NPS
In an extension of what we said earlier, NPS helps you save on the cost of customer acquisition. Tracking NPS keeps a check on your customer success rate and helps you gain a sense of how well your customers like you. The better they like you, the better the NPS ranking, and the more they are likely to spread a positive word of mouth for your brand. NPS has been termed the leading indicator of future growth because it indicates the number of customers who would potentially refer your product onward. The larger this number is, the lower the cost of customer acquisition gets for you.
NPS and Other Online Reputation Management Tools
NPS essentially helps you keep a check on your customer satisfaction levels. It not only gives you a score but a qualitative analysis too. However, using NPS with other tools can help complement the entire customer engagement and satisfaction process. NPS can tell you whether customers are happy with you or not. Social listening for reviews and online chatter related to their specific cause of dissatisfaction helps you zero in upon the real issues. Social engagement tools help you stay connected with your promoters and detractors. This, in turn, is absolutely essential for branding, especially during the formative period of a company.
Simple tools can be used to bring about a phenomenal change in your company’s customer care efforts. NPS, social listening, social intelligence and engagement tools can be used to serve a multitude of purposes simultaneously. Gain customer insights, receive feedback to reduce churn and improve product/service, identify promoters and detractors all from these few easy tools. We’d like to think of these ORM tools more as tools that open new doors to opportunities and not as any alarm devices.