Categories
customer loyality net promotor score NPS ReadWrite

6 Best Net Promoter Score (NPS) Software for your Business in 2021

net promoter score

Loyal customers are considered to be the most valuable asset of the business. If your customers are happy and satisfied with your products, services, customer, and brand, then only you can achieve their loyalty. Thus, measuring customer satisfaction and loyalty is essential for your business.

When it comes to choosing customer experience metrics to gauge customer satisfaction and loyalty, nothing beats Net Promoter Score (NPS) in terms of ease-of-use and its effectiveness.

Tomasz Tunguz, a software investor at Redpoint Ventures, indicated NPS is a leading indicator of future growth. It also helps you to cut customer acquisition costs and boost the profit of your business. A 5% rise in customer retention rate increases by 25% to 95% profits. Thus, retaining your lost customers can augment your profit rate drastically.

NPS is a leading customer satisfaction metric that measures customer satisfaction and the likelihood of your customers recommending your business or product to a friend or relative. NPS Survey finds out the exact number of customers who will recommend you and won’t recommend you at all.

The Net Promoter Score comes from the simple question, “How likely would you be to recommend our products and services to a friend?�. To calculate the Net Promoter Score, we use a simple NPS formula where we subtract the total percentage of Detractors from the percentage of Promoters to determine your overall Net Promoter Score.

Based on the responses, customers will be segregated into three categories.

  1. Promoters: 9-10 Score – They are likely to recommend your brand to their friends and family.
  2. Detractors: 0-6 Score – They are unlikely to recommend your brand to their friends and family.
  3. Passives: 7-8 Score – They may or may not recommend your brand to their friends and family.

NPS Software

NPS software will help you create, run, analyze, and calculate the NPS of your business. It captures instant real-time scores ranging from -100 to 100. It is a proven customer experience metric that is correlated with business growth.

Not sure what NPS software to use? Check out our list of the best NPS software. 

1. Zonka Feedback

Net promoter score software

Zonka Feedback is the leading NPS Software to effectively run the NPS Surveys at every touchpoint like Tablets (iOS and Android), Kiosks, Online, Email, SMS, QR Code, Web Popovers, Web Widgets, and Web Embed. Zonka Feedback personalizes your survey experience by customizing and white-label your NPS Surveys with logo, branding, and background.

It comprises 30+ Question Types and 40+ in-built templates for all industries, metrics like NPS & CES 2.0 that help you to create both Relationship and Transactional NPS Surveys. You can also display different questions based on the selected score by adding logic to your surveys.

Zonka Feedback NPS dashboard shows real-time responses with the score as detractors, passives, and promoters. To keep your team updated about the customers’ score, you can set real-time alerts based on the score. They can see responses with the score in real-time, auto-tagged as Detractors, Passives, and Promoters. This helps you to view and analyze each feedback and collaborate with team members to take action and resolve issues.

This user-friendly NPS Software enables you to get real-time access to various forms of NPS Reports like NPS Meter Report, Trends Report, Location-based reports, Text Analytics and more. These features help you to quickly create, distribute, manage your NPS Surveys on steroids!

2. Promoter.io
NPS Surveys

Promoter.io helps all size businesses measure loyalty & customer sentiment using the Net Promoter Score (NPS). It not only measures customer satisfaction but also predicts future customer behavior and trends. The NPS dashboard comprises a real-time instant tracker that enables you to track customer feedback and scores.

Promoter.io is seamlessly integrated with Salesforce, Slack, Promoter API, Zapier, and Segment to automate the survey schedule according to the different customer touchpoints. Various exciting features like real-time feedback, response alerts, instant analytics, close feedback loop management have made this software a good choice for you.

3. Wootric

NPS tools

If you are looking for a platform to get Net Promoter Score feedback at any digital touchpoint, then Wootric is your ultimate partner. This enterprise-ready NPS software enables you to optimize your NPS survey that impacts the customer.

It offers various exciting features like real-time reporting, NPS survey templates, advanced report and analysis, etc that make Wootric an ideal NPS tool. Wootric is seamlessly integrated with Salesforce, Zendesk, Slack, Intercom, Hubspot integrations to trigger surveys or act on data.

4. NiceReply

NPS Feedback

NiceReply offers a lightweight approach to capture the Net Promoter Score and manage the customer experience to improve customer loyalty. It automates the entire process of NPS data collection along with the analysis process. NiceReply has an intuitive UI dashboard offering 360 NPS feedback features to streamline the NPS survey collection, analysis, and management efforts.

5. Medallia

Net Promoter Score

Medallia, a SaaS-based NPS Software, captures B2B NPS feedback quickly. Backed by the AI technology that enables the company to analyze structured and unstructured data and operationalize and streamline your efforts and drive improvement.

6. SurveyMonkey

net prmoter score surveys

SurveyMonkey helps businesses to gather real-time instant NPS feedback. This tool has a set of advanced features that transform customer feedback into data that drives growth for your business.

You can easily personalize your survey experience by customizing the survey with logic, branching, close-ended and follow-up questions, branding, and logos. Additionally, you can use out-of-the-box integrations to automate processes and do more with SurveyMonkey.

Conclusion

NPS Surveys

Are you sending NPS Surveys from your regular mailbox? Stop this practice now. If you need quick and quality feedback data from your customers, then choosing the Net Promoter Score Software is the right option for you.

These are some of the best NPS software available in the market with explicit advantages. Thus, before choosing any NPS Software, always look at its features. I’ll suggest to you that if any NPS software service provider offers you a long, free trial, then use it to know the pros and cons before choosing it as a permanent part of your business.

Image Credit: sora shimaza; pexels

The post 6 Best Net Promoter Score (NPS) Software for your Business in 2021 appeared first on ReadWrite.

Categories
ReadWrite sms survey software sms survey tool sms surveys

SMS Surveys: How to Increase Your Response Rate

According to Mobile Marketing Watch, mobile penetration has reached 95%. With 9 in 10 adults owning a cellphone and 72% of smartphone owners reporting that they check their phone at least once an hour, text messaging (SMS) has become the communication norm for much of the U.S. population. The SMS opening rate has a mammoth opening rate of 98% vs. only 22% for emails. Here are SMS surveys and how to increase your response rate.

When it comes to connecting with the customers, small businesses have a shoestring survey budget. They always choose those survey platforms or channels that quickly capture the individual’s attention and ensure maximum response rate without going heavy on the pocket. Over the years, we’ve noticed so far that SMS and small businesses make a great pair.

Also, businesses that are not looking at spending too much on surveys, but want to maximize the benefits of it. SMS Survey is an affordable and simple way to reach out to customers, no matter how many or few customers you have.

What is the SMS Survey?

SMS Survey is a feedback collection channel where businesses can collect customer data via short messaging service (SMS) available on mobile phone devices. Although SMS is considered to be an outdated way to reach the audience, still, it is five times more effective than email.

The best thing about the SMS survey is that it can be sent to any type of phone, with or without internet access, and will be received even if the phone is turned off. All you need to do is pick up the best tool to send SMS Surveys that helps you collect data from customers on the move.

Benefits of SMS Survey

  • Widens the reach of your survey
    An average of 20 billion SMS is being sent daily this year, translating to 7.3 trillion annually! That’s more than 5.5 million per second! Thus, the probability of expanding the reach of your survey is high in SMS Surveys.
  • Enables to get high response
    An average of 31% of consumers will respond to a survey via SMS with the average response time for users being just over five minutes. This speedy turnaround helps you to collect quick responses to your SMS surveys.
  • Ensures personalized survey experience
    You can easily personalize the survey experience of your customers by customizing your SMS surveys. You can make your survey response-driven by adding an NPS Survey in the text message.
  • Provides quick analysis
    An ideal SMS Survey Tool enables you to collect customer feedback data in real-time and analyze your results instantly.
  • Ensures cost-effective solution
    SMS survey not only maximizes your response rate but also helps you to connect with your customers cost-effectively.

When to use SMS surveys?

Deploying the SMS survey helps you to capture real-time, accurate data. Here are some popular use-cases of SMS Surveys.

  • eCommerce & Online Shopping – You can use the SMS Survey Tool at retail, eCommerce stores, and shopping centers to get real-time feedback from shoppers. Sending feedback form via SMSes offers a great way to understand the likes and dislikes of your customers.
  • Delivery Experience Feedback – Whether you are a food delivery or logistics service provider, tracking delivery experience is a must for you. Trigger the post-delivery SMS surveys to your customers to evaluate your services and the attitude of your delivery executives.
  • Retail Store Feedback – Gauging the shopping experience of your customers can help you to improve the level of your products and customer support services. You can send your customers a post-purchase transactional NPS survey via SMSes. This collects the instant real-time experiences of your customers.
  • Patient Experience Feedback – You can instantly measure the post-appointment and post-discharge experience of patients via SMS surveys.
  • Flight Experience Feedback – There are a series of experiences while traveling through the flight. You can send post-lending SMS surveys after baggage collection to gauge the flight experience and satisfaction of your guest.
  • Restaurant & Hotel Feedback – If you want to quickly gauge the dining experience of your guests, then you can quickly send a survey via SMSes. You can also trigger SMS surveys to your guests while checking out from the hotel. This helps you to collect instant reactions of your guests about your services and hospitality.
  • Candidate Experience Feedback – Collecting feedback from the candidates can help you to improve your organization. Concerning this, you can send Post-Interview experience surveys via SMSes to the candidates.

15 Tips to increase SMS Survey Response Rate

  1. Keep your SMS survey brief
  2. Give your introduction
  3. Use clear opt-in and instructional language
  4. Personalize your SMS survey
  5. Ask relevant questions
  6. Create a mobile-friendly survey
  7. Give clear CTA
  8. Test before sharing
  9. Send your survey at an appropriate time
  10. Automate the trigger of the SMS survey
  11. Follow-up on SMS survey
  12. Avoid sending too many surveys
  13. Use a shortcode to send SMS Survey
  14. Choose mobile-friendly SMS survey tool

1. Identify and Segment your respondents

Your customers are more likely to respond to your SMS survey when they feel connected to it. Before designing your surveys, do little research about your customers to deliver a personalized survey experience. It is better to segment your respondents as per their customer journey and provide them with relevant and valuable survey content.

For example, you run a software-based company, and there are different clients, some are users,  and some are those who raised tickets for customer support service. You can segment the clients as per their requirements and send them customized SMS surveys.

2. Keep your survey brief

While designing your survey, remember that your text message has a limit of 160 characters. If you try to extend this word limit, then your message will be broken into chunks. This may put an adverse impact on the readability of your message. So, try to incorporate all the important elements of your survey in those 160 characters.

3. Give your introduction

Your customers receive lots of promotional SMS from their banks, financial institutes, and other brands they follow. So, among this crowd, you need to pretend to be unique. How? Build trust in your brand. Give your introduction and USPs of your brand. This helps you to add credibility to your survey and drive better responses. Since in the previous point, we’ve told you to keep your message short & simple. So, in this case, you can save the space by shortening the link of your survey using a URL shortener.

4. Use Clear Opt-in and Instructional Language

Keep your survey crisp and clear as crystal so that your respondents can attempt your survey in one go. For this, you can provide your customers with opt-in instructional language. You can simplify your opt-in instructional language by adding the simple text “reply with a number�. You can also give them an NPS scale to rate their willingness to recommend your product, service, company, or brand.

5. Personalize your survey

Customers or respondents are likely to attempt those surveys, which give them a sense of Affinity. So, if you want to maximize the response rate of your SMS survey, you can customize your message by considering the following things:

  • Segment the data of your customers based on their journey or demographic details.
  • Begin your message by addressing the respondents with their names.

6. Ask relevant questions

The main reason for the abandonment of a survey is a large number of questions. Especially, when it comes to attempting surveys on SMSes, customers expect short & crisp surveys. So, close-ended survey questions including MCQs, single-choice – yes/no, and NPS questions are all excellent question types that can be used in an SMS survey.

7. Create mobile-friendly surveys

Your SMS surveys should be mobile-friendly so that your customers must be able to open the survey on their mobile phones easily. Various online survey tools help you to create and customize mobile-responsive surveys.

8. Give a clear CTA

CTA (Call-to-action) is an influential way to grab the attention of your customers and improve the sales of your business if executed in the right direction. CTAs offer your customers to get engaged with your survey and encourage them to take action. This further helps you to achieve both your survey and sales goals.

Here are some CTAs that can quickly grab your customer’s eyeballs:

  • Buy Now
  • Call Now
  • Call Us
  • Click Here
  • Click Here Now
  • Click Here to Get Started
  • Click Here to Join
  • Click Here to Register
  • Click Here to Sign Up
  • Click Here to Start
  • Click Here to Subscribe
  • Click to Call
  • Click to Call Now
  • Enter Your Email Address
  • Get Started
  • Join
  • Join For Free
  • Join Now
  • Need Help? Call Now!
  • Register
  • Register for Free
  • Register Now
  • Signup
  • Signup for Free
  • Start Now
  • Subscribe Now
  • Tap to Call
  • Tap to Call Now

9. Test your survey before sending

Before sharing your SMS survey to your customers, always test and cross-check your survey. You can set up A/B testing for your SMS survey. Here in this, you can send two groups the same message at different times. This improves the reach of your survey among your customers.

10. Send your survey at an appropriate time

The response rate of your SMS surveys is determined by the time you choose to send your survey. To choose the perfect time slot, you need to undergo various demographics and customer behavior research. Based on general research it is considered that:

  • Avoid sending surveys late night or early morning. Try to push your survey in the prime time, when your customers are free.
  • Sending surveys also depends on the priority of taking feedback. If you want to take immediate instant feedback like in case of a post-delivery survey or post-customer support interaction, then you should immediately send SMS surveys to your customers. This helps you to gauge real-time experience. And if you want to take any product feedback, then send your survey after a few days.

11. Automate the trigger of the SMS survey

If you want to send SMS surveys to the customers in bulk, then automating the trigger surveys is the best option. There are various events where you need to send instant feedback surveys like post-order, post-delivery, and post-interaction. A smart SMS Survey Tool enables you to integrate your system with other CRM, third-party apps, and marketing automation software to automate the flow of surveys at different customer interaction touchpoints.

12. Follow-up on surveys

Sometimes it happens that your customers may ignore your survey due to their busy schedule. In that case, it is your responsibility to give them a polite reminder about it. You can send a follow-up SMS to your customers and ask them gently to give you feedback.

surveys

13. Avoid sending too many surveys

Sometimes sending surveys regularly can put an adverse impact on your response rate. This may interrupt your customers, and they may start losing interest in your brand. To avoid over surveying your customers or survey fatigue, you can use survey throttling. It is a survey scheduling system that automates and controls the frequency of the flow of surveys to individual customers. Through this, you can schedule your surveys in the following options:

  • 1 month (30 days)
  • 3 months (90 days)
  • 6 months (180 days)

14. Use a Shortcode to send SMS Survey

If you want to make it easier for your customers to fill your survey quickly without any hindrance, then use a shortcode to send SMS surveys. Shortcode is a 5 or a 6 digit unique number through which you can send and receive SMS from mobile phones. This system ensures a much faster survey delivery experience.

15. Choose the best SMS survey tool

One of the best ways to improve the response rate is by choosing the best SMS Survey Tool. It not only captures real-time customer feedback but also ensures you with other noticeable benefits like:

  • Send SMS Surveys manually, or via APIs
  • Send bulk SMS surveys simultaneously
  • Creating Mobile-friendly surveys
  • Integrate with your systems
  • Track SMS Surveys, deliveries and responses
  • Feedback reports and detailed analysis

The post SMS Surveys: How to Increase Your Response Rate appeared first on ReadWrite.

Categories
company surveys Customer Service Employee Feedback Software employee satisfaction Marketing Productivity ReadWrite

10 Different Ways to Use Employee Feedback Software at Your Workplace

employee feedback software

Running a company with a large number of employees is not an easy nut to break. Apart from managing a business or company — managing employees is another important responsibility for the owner. Here are ten different ways to use employee feedback software at your workplace.

Run the feedback — but how do you react?

You can easily manage your employees — and provide your workplace with an essential employee engagement bump without investing extra resources and efforts.

Your employee feedback helps you to get deeper insights into your employees.

Nowadays, every business is actively involved in taking Employee Feedback, but the basic difference is the way you are deploying it. The way you use the Employee Feedback determines the growth of your employees — and your company.

What is Employee Feedback?

Employee Feedback refers to a process in which a company asks constructive suggestions about work culture, company, managers, other team members, and other facilities like the cafeteria, and washroom.

These suggestions are being asked either through a questionnaire or through online employee feedback surveys (zonkafeedback dot com, Survey Monkey, others) conducted via emails and SMSes.

The practice of conducting employee feedback helps the company to gauge employee experience and their performance level and create a better workplace culture.

Why Do You Need Employee Feedback?

You may have a small or medium-sized company — or even a large multinational company organization.

Employee feedback surveys help the companies to acknowledge employees and their performances. Measuring employee feedback is an effective way to track employees’ expectations and fulfill them to ensure maximum employee satisfaction and loyalty.

There are various benefits of deploying Employee Feedback in an organization.

Employee Feedback

What is Employee Feedback Software?

The organization’s success is determined by the employees’ satisfaction and happiness. A happy and satisfied employee will always contribute to augment the company’s productivity along with business growth.

With the rising significance of gauging employees’ perceptions, feedback culture has evolved and massively used in an organization to measure employee engagement. Therefore, introducing Employee Feedback Software at the workplace has become the need of the hour. 

Employee Feedback Software is an online tool that enables you to measure the employees’ satisfaction and maintain a healthy work environment in the organization.

It not only provides a platform for employees to share their feedback and suggestions but also helps companies to drive real-time accountability for all touchpoints and areas.

How Employee Feedback Software Can be Used in the Workplace?

Employee Feedback Software can be used at different touchpoints to gauge the level of employee satisfaction.

Here are six different ways to use Employee Feedback Software in the workplace.

  1. Employee Satisfaction Survey
  2. Pulse Surveys
  3. Culture Surveys
  4. Cafeteria Surveys
  5. Amenities Surveys
  6. Mood Surveys
  7. On-Boarding Surveys
  8. Professional Development Surveys
  9. Performance Appraisal Surveys
  10. Exit Surveys

1. Employee Satisfaction Survey

As the name suggests, the Employee Satisfaction Survey can be conducted to gauge the satisfaction level of employees in the workplace. These surveys can easily be conducted through employee feedback software. 

Employee satisfaction surveys cover the following feedback aspects including about company, job, the workplace, and the manager. It also helps the organizations to track the employees’ perceptions about the company’s policies, and job security.

A survey contributes to creating a motivated workforce and positive work culture. The parameters gauged from an employee satisfaction survey are directly influencing the employee retention rate.

Employee Satisfaction Survey Questions

2. Pulse Surveys

Pulse Surveys are short and different from other typical surveys. It is meant for  

Many organizations now prefer to use employee pulse surveys. A Pulse employee survey refers to a quick survey system that is conducted weekly or every few weeks. This employee survey is conducted with the intent to get a frequent insight into the health of the organization.

Pulse Surveys help the organizations to acquire employees’ information regarding workplace areas of interest including employees’ engagement, satisfaction, work culture, and other parameters. These areas help the organization to get into the employee’s opinion on specific parameters. 

The data collected through pulse employee surveys also help the organizations to frequently map out the latest employee feedback trends and patterns. This practice contributes to employee morale and maximum satisfaction.

Employee Surveys

3. Culture Surveys

Whenever we choose any company or organization, after the pay scale, we look at the culture of the company. The culture of the organization helps the employees to fit themselves in the organization environment. On another hand, the culture of the organization plays a crucial role in making an organization a milestone. The culture of the organization affects the business decisions, policies. Actions, and missions & goals. 

The organizational culture trends and patterns are changed over time. So, the organization needs to conduct Culture Surveys to ascertain the employees’ perceptions about the organizational culture. This survey provides an in-depth and clear picture of the internal structures, skills, and qualities that affect the behavior, and management style of the organization.  

Based on the data collected from surveys help the companies to seamlessly go through a culture improvisation including management changes, amenities improvisation, mergers, acquisitions, and large changes in management.

employee survey software

4. Cafeteria Surveys

When it comes to establishing or improving healthy work and communication culture, no place is better than a cafeteria. Also, food and facilities make this place a great source for strengthening the bond between employees.     

So, the organization needs to conduct regular cafeteria feedback among their employees to get to know about their perceptions regarding the quality of food, taste, hygiene, availability of food products, etc. 

Now forwarding cafeteria email surveys at the workplace seems a little awkward. In the flow of work, either ignore the surveyor or spam your email survey. So, to avoid this, you can set up a simple Kiosk Survey System at your cafeteria. This will help you capture real-time instant employee feedback about your cafeteria.

5. Amenities Surveys

Now since you’ve considered taking feedback about the cafeteria, there are various other services or amenities for which you need to take employee feedback. You should conduct Amenities Surveys that help you to track employees’ opinions about facilities and privileges provided by you as a company. 

Amenities Survey covers feedback on various parameters including washroom, cleanliness of workspace, availability of stationeries, hygiene at the workplace, gym (if have), medical facilities, etc.  

You can set up a survey tablet or kiosk survey in washrooms, gyms, and other employees’ touchpoints with the simple rating scale questions to capture employee feedback. This helps you to collect real-time feedback data and improve your other services and amenities to make your workspace a comfortable hub.

Employee Feedback Survey Software

6. Mood Surveys

Employees’ sentiments or moods determine the level of the employees’ engagement. According to the State of the Global Workplace report, 85% of employees are not engaged or actively disengaged at work. So, if you want to make your employees happy, satisfied, and keep them engaged, then you need to actively involve yourself in conducting Mood Surveys to track the sentiments of your employees. 

Mood surveys help you to capture the employees’ sentiments in special scenarios like change in leadership, management reconstruction, business transitions including mergers, etc. on these touchpoints, you are easily able to track the different employees’ mood patterns and trends. Employee Mood Surveys help you to quickly track whether your employees are happy or frustrated at the workplace.

Based on the data collected from the mood surveys, you can quickly trace out the dynamics that lead to employee disengagement. Acting on it and resolving the issues can help you to reduce your employee churn rate and improve employee retention rates.

Employee Feedback Survey Software

7. On-Boarding Surveys

On-Boarding, as the name suggests, these surveys are specifically conducted to understand the perceptions and opinions of the new employees and how new hires feel about the organization. On-Boarding Survey can be forwarded to the selected candidate during the salary negotiation. This, in turn, helps you to understand the employees’ expectations and the latest hiring trends and patterns to make your hiring process and onboarding survey experience better.

According to the study by SHRM, the onboarding process should go beyond passive first-day orientation and morph into regular conversations throughout the first 30, 60, and 90 days.

You can handover a tablet-based feedback system to the selected candidate where they can freely give their feedback, opinions, and suggestions regarding the onboarding process.

Employee Feedback Survey Software

8. Professional Development Surveys

When it comes to sustaining in an organization, Professional development is a very important aspect for an employee. Today’s employees are career-focused and learning-oriented employees, who love to stay long at that place where they grow and learn simultaneously. If you want your employees to sustain long at your company, then start ascertaining their professional development. 

For this, you can conduct a Professional Development Survey to assess your approach in providing professional scope to your employees. It also helps you to track the quality and performance of the skills, leadership training, executive, and industry exposure you are providing. This, in turn, helps you to promote an engaged and skilled workforce.

9. Performance Appraisal Surveys

Performance appraisal is the secret of employees’ productivity….LoL 

Well, jokes apart, employees are eagerly waiting for this period. Here in this, the manager plays a crucial role in properly evaluating the performance of the employees and providing them with the boost to perform effectively. 

So, the Performance Appraisal Survey is the best platform where managers can offer employees constructive criticism without being into the grey shade. These surveys not only motivate your employees to perform well but also develop healthy communication and engagement between employees, managers, and supervisors.

10. Exit Surveys

The loss of a talented employee is very tough but it is a perfect opportunity where the organization can collect genuine feedback from a departing employee. Conduct an Exit Survey to get an in-depth understanding of the employees’  perspectives and experiences regarding the workplace, company policies, work culture, career scope, etc.

 

The post 10 Different Ways to Use Employee Feedback Software at Your Workplace appeared first on ReadWrite.

Categories
customer experience customer feedback customer feedback software Customer Service Net Promoter Score NPS Survey Software

Why You Should Measure Net Promoter Score (NPS)

net promoter score

Many times, when I want to make big decisions like buying a new phone, any new gadgets, or investing in any mutual funds and share market — I always follow three rules. Might I suggest these rules to you? Here is why you should measure the net promoter score (NPS).

My rules for large or small decisions

First: I check other people’s recommendations on the websites. Second: I myself ask my friends, family, relatives, and my colleagues. Based on their thoughts about the product or service — Three: I take a couple of minutes — to think! Following these three simple rules — I can quickly make a firm decision.

Similarly, your customers may not even realize that they are following the same rules to make decisions.

Your family, friends and even customers buy products, services on the basis of the recommendations from other friends and relatives. According to a study, 83% of respondents said they trust recommendations from family and friends more than any other form of advertising.

It’s important for you and your business to know whether your customers are interested in your product or service. Start asking: who is recommending my products, services, and business brand to other people?

When you ask those questions — here is where the Net Promoter Score (NPS) metric can help you to track customers’ willingness to recommend your brand to others.

What is the Net Promoter Score?

Net Promoter Score is a leading customer feedback metric that helps you to gauge the customer experience, specifically customer loyalty and satisfaction. The Net Promoter Score can be achieved by conducting the Net Promoter Score Survey using the Net Promoter Score Survey Software (from zonkafeedback).

The zonkafeedback customer experience metric system was introduced by Fred Reichheld of Bain & Company in the year 2003  through his best-selling book named “The Ultimate Question: Driving Good Profits and True Growth.

How Net Promoter Score System Works?

The Net Promoter Score comes from the simple NPS Question: “How likely would you be to recommend our (PRODUCT/SERVICE/BRAND) to a friend or relative?�

With that question, the customers are provided with a score scale from 0 to 10 to range their willingness to recommend.

After that, the business will segregate their respondents or customers on the basis of nature (positive, negative, and neutral) of their scores and broadly categorized them into Detractors (who scored you from 0 to 6 ), Passives (who scored you 7-8), and Promoters (who scored you 9-10).

How to Calculate the Net Promoter Score?

The Net Promoter Score can be calculated by using the simple NPS formula where you have to subtract the total percentage of the detractors from the total percentage of the promoters. The Net Promoter Score number can range from -100 to 100.

You can also use an Online Net Promoter Score Calculator.

Net Promoter Score Formula = %Promoters – %Detractors

Why You Should Measure Net Promoter Score?

The Net Promoter Score is the quickest and easiest way to get a clear picture of your customer sentiments. It can further help you to identify the strengths and anomalies of your products or services and make it better and more customer-centric.

There are many reasons why you should be measuring your company’s Net Promoter Score:

  1. It measures customer loyalty
  2. It provides an instant indication of customer satisfaction
  3. It drives word-of-mouth traffic
  4. It leads to product improvement
  5. It enables to close the feedback loop
  6. It reduces customer churn rate

Here is what you can now base your business on:

  1. It Measures Customer Loyalty

Customer Loyalty refers to the customer sentiments or positive experience in which consumers express their satisfaction level achieved after using any product or service. Loyal customers will not only engage with your brand but also likely to choose your products and services consistently over other competitors.

According to the research report, 66% of US consumers make decisions based solely not on the product and its price, they are also considering the loyalty factor as well. They are willing to spend more on those brands to which they are loyal.

For example, there are lots of features in the iPhone that are similar to that of Android phones, but Apple loyalists will choose an iPhone despite it being priced higher than its competitors.

If you are choosing customer loyalty as a performance indicator, you need to take care of two things, first is choose an accurate way to measure it and second is the ways to control its fluctuation.

When it comes to measuring customer loyalty accurately, the Net Promoter Score and Churn Rate are two measuring metrics that can help you to drive accurate customer-powered data.

Calculate the Net Promoter Score

To check your customer loyalty, you can conduct the Net Promoter Score Survey among your customers. If they score their willingness to recommend your product/service/brand to others 9 or 10, then they are promoters and considered to be loyal customers. But if they score their willingness from 0 to 6 and 7-8, then they are detractors and passives respectively.

Measuring the Net Promoter Score can help you to identify your detractors and passives (kind of disloyal customers) and follow up with them to solve their issues. This helps you to improve your customer experience and turn your detractors or passives into promoters.

  1. It Provides an Instant Indication of Customer Satisfaction

It is clear that the NPS Survey gives you a concise understanding of the customer relationship with your brand. But along with the loyalty, NPS Survey also helps you to track instant customer satisfaction.

The Net Promoter Score Surveys can be conducted quickly after an event or transaction to track instant customer satisfaction. Let’s see, how?

Transactional NPS Survey helps you to gauge the real-time instant customer satisfaction immediately after the specific interaction or transaction or event like placing a new order, booking tickets, doing online payment and so on. The answer helps you to determine those things that caused an unpleasant experience for the customer.

There are different touchpoints in the customer experience journey where you can trigger the transactional NPS Questions and ask, “How would you rate our company on a recent experience?” Some example times to ask will be:

  • After Ticket or Call Raised – Once you conclude the call with the customers, you can send them a Transactional NPS Survey to determine whether they are satisfied with your interaction and support services or not? With this practice, you can also gauge the level of effort your customers are putting with your customer service agents to get their queries resolved.
  • Post-Order Survey – When your customers have placed a new order or completed any specific business transaction with you, always send them a transactional NPS survey via SMSes or Emails to track their real-time experience and customer satisfaction. Data collected through surveys can help you to streamline your product and customer strategies and improve the customer journey.
  • Post-Delivery SurveyPost delivery surveys are very important if you are an Ecommerce business owner or a restaurant dealing in food delivery service. You can share transactional NPS surveys either through SMSes or you can also encode QR Codes on the boxes or bills. Post-Delivery Surveys serve you with the key indicator to analyze your delivery & logistic services.
  1. It Drives Word-of-Mouth Traffic

In this competitive market space, driving customers to the business is the biggest challenge. It is important for a business to first focus on bringing new customers to the business and this can be achieved when your existing customers spread positive word-of-mouth for your brand. Here the Net Promoter Score Survey enters into the play.

It is already cleared that NPS Surveys data determine your detractors, passives, and promoters. But the whole thing revolves around how you are using the NPS survey data?

There are many ways to deploy NPS Survey data to get positive results. One among them is deploying the promoters’ scores, their positive word-of-mouth to build a strong brand image. When your promoters recommend your products/services/brand to their friends and relatives, they are indirectly quantifying the word-of-mouth traffic.

According to Nielsen’s latest Global Trust in Advertising report, 92% of consumers trust recommendations from their friends and relatives more than other mediums. Thus, online customer feedback and reviews have become the second most trusted source.

If you want to augment your word-of-mouth traffic, you need to get more and more promoters and for this, you need to conduct the NPS Surveys. If you are worried about detractors, then don’t worry, with the Net Promoter Score Survey Software, you can quickly follow up with them and solve their issues and improve their perception towards your business.

Quick Follow Up — Fix the Issue

Quick follow up helps you to turn your detractors to promoters. According to Lee Resources, 70% of detractors will do business with you again if you fix an issue they’ve complained about.

You can share the word-of-mouth (high Net Promoter Scores, positive feedback, recommendations) at different stages of the buyer’s journey including product consideration, evaluation, and purchase to develop the market and attract more new customers to the business.

  1. It Leads to the Product Improvement

Products or services need time to time up-gradation and improvement to survive in the competitive market wherein customers can quickly switch to the other brand if they are not satisfied. So, it is important for every business to check whether the products or services are performing well among customers or not?

Deploying Net Promoter Score Survey can help you to understand the negative side of your product and service. Real-time tracking helps you to upgrade and improve your products and services.

How?

When it comes to surveying customers, NPS Survey system offers a two-part questionnaire:

  • Close-Ended NPS Survey Question – The Net Promoter Score question itself “How likely is it that you would recommend [Organization/Product/Service] to a friend or colleague?â€�
  • Follow Up NPS Survey Questions – These questions refer to the open-ended follow up questions where you ask the reasons for their scores.

We have different types of NPS Follow-Up Questions that can help you to go into the meat of the issues faced by your customers. Some best Follow-up NPS Survey Questions are:

  • What is the primary reason for the score?
  • What was missing or disappointing in your experience with us?
  • What do you like & dislike about (company or product name)?
  • How can we improve your experience?
  • How can we make you happier?
  • Logic-Skip Based NPS Questions

These questions help you to identify the strengths and anomalies associated with your products or services and quickly improve them to ensure a better customer experience.

It is not necessary that you can only approach your detractors with follow up questions. You can also effectively use the follow-up questions among your passives and promoters. In the case of passives, when you ask the reason for their scores, you’ll get to know the things that stop them from being promoters. This again provides you with scope to make your products or services better.

In the case of promoters, this helps you to understand the positive side of your products and services and make it even better.

  1. It Enables to Close the Feedback Loop

This is one of the most important strategies you should consider when you are deploying the Net Promoter Score System to follow up with your detractors. Why? Keeping your detractors unaddressed can be dangerous for your brand image and business growth.

Detractors usually not only give negative feedback and bad scores but also spread bad word of mouth for your brand. According to the study published on LinkedIn, 75% of consumers stated that they share a negative experience with their friends and colleagues, whereas 42% of them stated they’d recommend a product/service. The negative feedback has more impact on the mind than a positive one.

Addressing detractors and close the feedback loop is a healthy practice for your business.

When it comes to closing the feedback loop with your detractors, you need to understand the Customer Feedback Loop Anatomy. It helps you to identify and address each and every kind of issue of your customers. There are basically two types of customer issues in customer feedback loop anatomy:

  • Recurring Customer Issue – It refers to the common and general issue which happens with many customers. Say, if customers (guests) give feedback about the hotel’s washroom, its cleanliness, availability of toiletries, etc. These issues are considered to be recurring issues and are solved on the business level.
  • Personal Customer Issue – It refers to the issues that specifically happen with individuals. These issues are based on the personal opinion of the customers. These issues are solved by following up personally with the customers.

Once you understand this anatomy, it will help you to look at every nook and cranny of every concern of your detractors and swiftly solve them to improve their experience.

To close the negative feedback loop with detractors, first follow up with them personally, either through an email or through a personal phone call. You can open your conversation with the apology and then ask some really engaging questions like

What is the thing that they couldn’t find in your products and services?, How we can improve your experience, etc. These questions will help you to convince your detractors and coney them that you are really concerned to fix their issues.

Besides, personally following up with them, you need to make them feel very special. For this, you can provide them with some free giveaways like free products or service guides or you can also provide an extension of the free trial.

  1. It Reduces Customer Churn Rate

Determining the inflow (who stay in) and outflow (who go out) of the customers is very important for improving overall business growth. And with churn, forget about improving, you can’t even achieve the ground level of the business growth. So, start focusing on reducing Customer Churn Rate.

Customer Churn Rate refers to a business metric that enables you to calculate the number of customers who leave your business over a specific period of time. When you calculate your churn rate, you could able to find your churned customers. These churned customers provide constructive criticism that works as a great source of products, services or business improvement.

If you want to calculate the Customer Churn Rate, you can use the given formula:

Churn Rate % = Number of Churn Customers ÷ Total Number of Customers ✕ 100

Total Number of Customers = Number of existing customers + Number of acquired new customers – Number of churned customers

For example, say if you want to calculate the customer Churn Rate for a period of 30 days. Say, on day 1 you have 500 customers and during the next 30 days, you acquire 100 new customers. During the same 30 days, 10 of your existing 500 customers do not convert or cancel for whatever reason (assumed lost).

Customer Churn Rate = Number of Churn Customer Total customers ÷ (Number of existing customers + Number of acquired new customers – Number of churned customers) ✕ 100

Total Customers = 500 +100 -10 = 590

Therefore, 10 ÷ 590✕ 100 = 1.69%

So, Customer Churn Rate = 1.69%

Conclusion

Measuring and using your Net Promoter Score to the best advantage for your business will bring increased business and satisfaction.

The post Why You Should Measure Net Promoter Score (NPS) appeared first on ReadWrite.