The Net Promoter Score is one of the most commonly used indicators of customer loyalty. NPS measures the willingness of customers to recommend a company or product, and gives businesses insights into how they can improve. But, it’s not always easy. Making sure you’re implementing your NPS in the right way is essential to getting the most out of it. Otherwise, it can be pointless. There are many companies that have struggled to measure their NPS and implemented it in the wrong way, which has led to them getting no value from this metric. If you’re thinking about implementing the NPS in your company, here are some common mistakes that you need to avoid:
The problem is your survey, not your NPS.
When measuring the NPS, you need to make sure that the survey that you’re asking your customers to take isn’t the problem. Many companies are so focused on the NPS that they often forget to look at the quality of their survey, which can lead to incorrect results. This survey needs to be short and to the point, so that your customers don’t get turned off or bored by it. It also needs to be focused on the customer’s willingness to recommend, so that they only have to give one rating. You also need to adjust it based on your customer segments, so that you’re getting the right information.
You ask for the wrong thing.
The NPS is a great indicator of how customers feel about your company and product. But, it can also be completely useless if you aren’t asking for the right thing. If you ask your customers if they would recommend your company, but they aren’t familiar with it, or you don’t have any products for them to buy, then their recommendation score is going to be pretty low. This is a huge problem for many companies, since it means that their NPS is irrelevant. In order to get the most out of this metric, you need to ask customers what company they would recommend. This will give you much more actionable insights, and help you to improve your company.
You don’t use it to determine your next move.
One of the biggest problems with the NPS is that companies don’t use it to make decisions. Those who are truly interested in improving their business are going to want to know what the key metrics are, so they can improve them. But, many companies aren’t measuring their retention rates or their sales figures. Instead, they’re giving their customers a one-time survey, and then nothing happens. This is a big mistake, since it means that your company is missing out on valuable information about how to improve. If you ask customers if they recommend your brand, but don’t take action on those results, then it’s a waste of time. You need to make sure you’re using the NPS to improve your company so that you’re getting the most out of this data.
You ask too often.
Many companies are so focused on improving their NPS that they constantly ask their customers to take the survey. This can lead to customers getting annoyed, and even avoiding your brand. You need to be careful to only ask your customers to take the survey once. After that, you should only be using the results to improve your company. You can, however, ask your customers to rate their experience at certain points in time, or after a certain event. This can give you a lot of insights into your company, but without annoying your customers.
Your question is too long and confusing.
Another big mistake that companies make when implementing the NPS is that their question is too long and confusing. Your survey should be short and to the point, but for it to be effective, it has to be easy to understand. If your customers are confused by your survey (or don’t understand it), then they won’t give you accurate results. This means that your NPS is basically useless. To get accurate results, make sure that your question is short and easy to understand. Your customers shouldn’t have to think too hard, or spend a lot of time reading it.
Your follow-up is too complicated.
Another common mistake that companies make is that they follow-up with their customers in the wrong way. You want to make sure that you’re not annoying your customers, but that you’re getting the data that you need. If you’re following-up with customers and they feel pressured to respond, then you might be getting bad data. Customers might be taking the survey just to get you off their backs, which means that you aren’t getting the information that you need to actually improve your company. That being said, it’s also important to give customers enough time to respond to your survey. If you follow-up right when they’ve just had a bad experience, you might catch them at a bad time. This will cause them to respond in a way that they regret.
Most companies will implement the NPS on their website. This allows customers to rate their experience and leave a recommendation at the end of the checkout process. The best part is that it’s completely anonymous. Customers aren’t required to give their names, or any other information that would allow you to identify them. The NPS is a great metric that can help businesses make improvements to their products, services, and overall experience. However, it’s important to avoid making common mistakes when implementing it in order to get the most value out of it.