Applying the NPS (Net Promoter Score) Assessment for Business Development

NPS is an advanced indicator of business development. If your NPS is superior to the competition, it is likely that you will be able to gain more market share.

In the last article, we looked at the basics of the NPS (Net Promoter Scor). Now let's talk about how you can apply the NPS results to a business development.

NPS is an advanced indicator of business development. If your NPS is superior to the competition, it is likely that you will be able to gain more market share.

Much of the new business is maintained by existing customers. In addition, it is much more expensive to attract new customers than to meet the needs of current customers. By conducting a survey to identify nuclear power sources, you can increase the retention rate of your customers by determining how satisfied they are with the work of the company. By analyzing the data obtained during the survey to determine the NPS, you can increase the percentage of customer retention.

"Up to 85% of new small business customers are attracted by word of mouth."

Maintaining a high NPS rating can help determine the direction of business development and drive growth. For example, startups such as AirBnB and Dropbox have been able to succeed and especially to avoid failing in advertising or marketing campaigns.

Continuous tracking of NPS scores

Most companies make the mistake by interviewing all their customers 1 to 2 times a year, which prevents them from reaching all customers. And what is the result? The company receives invalid data.

Wrong results can be eliminated by scheduling NPS surveys over the course of the year (weekly, monthly, quarterly) in order to be able to actively monitor customers' attitudes toward the business.

NPS Results: What's behind the numbers?

You will not be able to say much about the company, considering only its NPS rating - you must also evaluate the company's place in the industry. The store may have a rating of 30, but is at the same time the worst in its field, while a telecommunications brand with a rating of 32, may be the market leader.

So what are the factors that influence the NPS score? How do you understand that you have bad or good performance? First, two factors affect the performance of the NPS:

1. competition

This is an important factor in determining the degree of filling of your sector and the uniqueness of your offer.

If you work in a highly populated sector, such as insurance, banking or health care, the average NPS score is normal. But if you produce, for example, electronic machines, it is important to make sure that you have a high NPS index, because there is less competition in this area.

Average NPS score for different areas of activity: Bank - 0, auto insurance - 22, health care - 27, airlines - 36, travel - 38, hotels - 43, e-commerce - 45, internet services - 48

2. Customer Tolerance

Tolerance is one of the most important factors that affect NPS rates because people's statements about the products or services they use on a daily basis are often simple.

Note: Verizon has a rating of 38, which is usually average, but it is the highest in its sector. In fact, the competing companies (AT & T and MediaCom) have even lower ratings, respectively -15 and 22.

The problem is not that these companies provide poor quality services compared to other industries, but that they work in a very competitive industry that cannot allow service interruptions or any flaws in it.

What is a "good" Net Promoter Score?

It is impossible to answer the following question clearly: what is the ideal assessment of the NPS system? For different types of business, the answer will be different.

Here is a simple way to understand when you have a good score:

  • Is it better than your competitors? If so, then for your industry you have a good estimate. But it's not enough. Read below.
  • Does it grow up? If you interviewed your clients once every 3 to 6 months, a good NPS score should be higher than the previous survey.
  • Do your best to keep it above 0. Even if your competitors have a score of -50, do not let your NPS fall below free, (-) this is an alarming signal that your customers are not are not satisfied with your business.

If you would like to start tracking NPS on your website or mobile app please review our Customer Intelligence Suite solution.

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