Can you drive profit from NPS?
Does NPS generate revenue? The short answer is, according to many studies, yes! There’s a proven linkage between improving your Net Promoter Score and driving profitable growth. Let’s take a look at these stats that proves NPS can have a very positive effect on your companies ROI:
- Companies that have adopted NPS grow twice as fast as their competitors. (Bain & Company)
- An average NPS increase of 7% correlates on average with a 1% growth in revenue. (London School of Economics)
- 9% of companies that have the most sustainable and profitable growth had NPS scores 2.3 times higher than scores from companies in the same sector. (Philips Electronics)
- From 2007, when Apple started measuring NPS, to 2011, the score has grown from 58% to 72%. (The Ultimate Question 2.0, Reichheld)
The ROI of NPS is undeniable and is an integral part of gauging your customer’s satisfaction with your company. So, how do you ensure you have a mature NPS program that generates profit?
GET INTO GEAR
A mature NPS programme enables companies to use real-time data to track crucial break-downs, put a financial value on the risk represented by unhappy customers and take corrective steps. Few invest the same amount of time in understanding what it is that Promoters love about you – so ask and work to establish best operating practice and business improvements.
TAKE THE WHEEL
After a respondent chooses their rating, ask why they chose the number they did. You could also ask how your product or service could be improved for next time. A surprising number of respondents will be happy give the reasons behind the number they chose, allowing for more insight and deeper analysis of how to improve.
SWITCH ON FULL BEAM
NPS provides you with a clear indication of who your detractors are. If customers respond to any follow-up questions, you may also be able to determine why they are detractors. This can help you turn a would-be dissatisfied customer into a customer who feels valued. It may also help you pinpoint customers who are leaning toward dissatisfaction but are still open to having their minds changed and reduce customer churn.
Customer Experience software enables businesses to gather feedback across all channels in real-time and act to drive returns from an NPS programme. These systems integrate with key financial and operational metrics allowing the ability to identify the root causes of key customer issues, prioritise according to what is best for your specific company and take action to improve service profitably.
Keep our handy infographic that shows you 4 ways you can drive profit from NPS.