Understand what NPS is and how it can impact customer retention

Customer satisfaction is one of the most important factors for the success of any business. One of the ways to know it is through a metric called Net Promoter Score. If you don’t know what NPS is, follow the article to the end. This methodology is very simple to apply and can significantly contribute to measuring the degree of loyalty of your consumers. With it, one can understand whether they are, in greater numbers, promoters, passives or detractors. Knowing the NPS is essential to work on actions and strategies that will contribute to customer retention, so this methodology cannot be left out of your actions. What is NPS (Net Promoter Score)? In the introduction we basically explain what NPS is. The acronym stands for Net Promoter Score, a methodology to measure the degree of customer satisfaction and that helps to know the loyalty that your company can achieve. It is a type of score that customers give to your business by expressing how satisfied they are with the services, products, service and others offered by the company.

How did NPS come about

NPS came into being in 2003 after Fred Reichheld published in the Harvard Business Review. In his article called “The number you need to grow”, the expert presented some of his findings Australia Phone Number List including showing how to maintain customer loyalty based on the Net Promoter Score methodology. What is NPS for? As said, NPS is used to know customer satisfaction, whether in relation to a service, a brand or a product. We can use this metric at a specific stage of the journey, but also to measure customer satisfaction throughout the purchase journey. What are the advantages of using NPS? NPS rose to prominence very quickly because of its effectiveness compared to other satisfaction surveys. Below, we present some of the advantages of this methodology. Easy to use It was easy to understand what NPS is and it’s even easier to use. It allows for hassle-free satisfaction surveys because we ask the customer a question and the customer’s answer is to mark a number from 0 to 10.

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Less risk of result manipulation

It becomes very difficult to handle an NPS survey because you will only ask your customer one question. It is clear and to the point, so he won’t be influenced or confused by other questions or the diversity of answers. You will have a clear and accurate metric of what your customers are thinking. Great adaptability DX Leads You’ve seen that you can use NPS at any stage of the customer journey. This guarantees an interesting adaptability for this methodology. It is possible to ask a question in the most different situations and obtain specific information, exactly about what you want your customer to evaluate. How does customer ranking work? In NPS we classify customers into three broad groups: promoters, neutrals (or passives) and detractors. Promoters (grade 9 or 10) They are the ones that give a 9 or 10. They are usually loyal people, who prefer their solutions and recommend them to friends, family and acquaintances. Neutrals (grade 7 or 8) They rate 7 or 8. They may be satisfied with the solutions.

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