By establishing the NPS index, a company gets the opportunity to soberly assess the effectiveness of its activities. Experts believe that the NPS index alone is not enough to make important management decisions or develop an advertising campaign. The results of other studies, more fundamental and extensive, are also needed.
It is necessary to measure NPS systematically in order to learn in a timely manner how customers’ perception of the brand is changing and to urgently optimize the promotion strategy, if necessary.
5 Metrics That NPS Can Improve
Retaining customers and expanding the customer base
Large-scale studies have proven sri lanka email list that the NPS index can be used to judge the dynamics of business growth: if your NPS is higher than your competitors, then there is a high chance that you have already captured a significant share of the market.
According to Gartmer research, at least 65% of startups have a formed customer base. Retaining old customers is five times cheaper than attracting new ones. The loyalty index objectively reflects the degree of consumer satisfaction with the company's work and its products and shows what proportion of customers become regular after the first contact.
With the help of the NPS index, a company can make current growth indicators sustainable. That is, the index can also be considered as a business development tool.
Sales Management
The NPS index provides valuable information for making marketing decisions.
Based on this, priorities can be easily set in such a way that the current needs of the target audience are taken into account. Feedback can be obtained quickly and easily, and the results can be used to change the product distribution system.
5 Metrics That NPS Can Improve
Marketing
Verizon conducted a study that showed that for 85% of new buyers, word of mouth is the source of information about a brand. With a high NPS index, the company does not have to invest additional funds in marketing and advertising, because customers themselves successfully find it and their flow does not weaken.
Using the NPS indicator, marketers evaluate the opinions and sentiments of the target audience, and then develop recommendations for all company employees. This ensures the coordinated activities of all departments in the name of the global goal - to ensure that customers are satisfied.
The NPS index can be supplemented with other analytical tools. This will allow not only to make a cross-section of the current situation, but also to model behavioral patterns for different segments of the target audience.
HR management and corporate culture
The NPS index is also used to determine employee loyalty. This is extremely important for companies selling services.
When searching for new directions for the development of corporate culture, the NPS index is also a source of valuable information: it clearly reflects the attitude of personnel to innovations and the company's established personnel policy.
KPI and financial reporting
Although experts recommend conducting serious research into the target audience and market periodically, it is acceptable to use the NPS index as the only criterion for assessing customer satisfaction. This index should be calculated regularly and reported on a quarterly basis. Comparing NPS and financial indicators will help build an effective long-term development plan for the enterprise and provide useful insights.
Correlating NPS with data from financial reports provides valuable information for assessing the dynamics of a company's development. If profits are growing and the NPS index is falling, then it's time to seriously think about the company's long-term prospects.