Recommending you NPS

In our practice as researchers, marketing executives and consultants we have seen many different approaches to measuring customer satisfaction, loyalty and growth potential. They vary from complex licensed methodologies to in-depth studies of customer experience and repurchase intent.

We would like to recommend you a different approach – using the NPS metrics.

NPS (Net Promoter Score) is a tool that can combine all above mentioned indicators in a much shorter and easy-to read form – asking about the willingness of your customers to recommend your product or service. This willingness to recommend you to friends, colleagues and relatives is measured through a scale and segments your customers to 3 groups – Promoters, Passives and Detractors.

The study is easy to implement, when you have the proper training and experience with the methodology. It is also very easy to read and understand by all your employees and executives. A great benefit of the methodology is also the clear question and short questionnaire, making sure that the data is accurate from fieldwork/ respondents perspective.

Having a short questionnaire and easy-to-read metrics though is not a strong enough reason for recommending you the methodology. The strongest point is the clear guidance on what you need to improve and what to maintain in order to generate more customers who are glad to promote you to external audiences.

NPS brings to you directly the customer feedback and you are faced with the issues that cause dissatisfaction and those that cause positive referrals to your offer inside the competitive environment that you work in.

It is every marketing person’s wish to know “What can we give people that will make them feel good when they tell others...thus making them want to tell others?! What can we do that’s so buzz-worthy that they cannot possibly keep it to themselves?”

Word of mouth marketing is relevant and needed today more than ever before. It can substantially help companies address many of the major challenges:

• Low consumer trust
• Tightened budgets for marketing
• Needing to Differentiate in a commoditized, highly competitive environment

There are some categories and industries that are traditionally more influenced by recommendations, based on personal customer experience than other categories. One would more often ask friends for recommendations on which bank to choose than on a candy bar, but still happy customers that promote you are valuable in every business. Other examples of word of mouth highly sensitive industries are baby products, health, pharmaceuticals (OTCs), insurances, finance, B2B services, electronics, automotive, etc.

Wouldn’t you like to have one simple measure of your customers’ experience that indicates

• customer satisfaction
• what to improve in your product/service/company
• what you need to maintain in order to keep customers happy
• how is your offer considered in the competitive environment

through a short study that will help you manage your marketing budget better?

This is not a sales line. It is an invitation to check the opportunities and receive more information. Call or e-mail, or join one of SEERC Academy’s training sessions on NPS.

NPS was developed by Satmetrix, Bain & Company, and Fred Reichheld, and has been embraced by leading companies worldwide.