Top 5 business impacts of a successful NPS program

The Net Promoter Score (NPS) is a great metric to gauge the loyalty of your customers and is a suitable tool to identify improvement opportunities. However, this metric alone is of little use if not accompanied by a program with clear strategies, objectives, and actions. A clear NPS program ensures not only closing the loop with your customers but also implementing enhancements in your Customer Experience and end to end business operations. NPS is not only about customer satisfaction. Implementing a successful NPS program can help you increase your revenue, assess the trending health of your customer loyalty and business risk, among other significant benefits.

Here are the top 5 benefits of implementing a successful NPS program in your company.

1. Reduce customer churn

A successful NPS program means more returning customers and less cost in customer acquisition. It is no secret that attracting new customers is a high-cost endeavour, and retaining an existing customer is far less costly. With the suitable NPS program, you can identify new ways to make your customers stick around longer, and buy more, and therefore, reduce your customer attrition.

2. Use customer experience as a differentiator

If you wish to enjoy sustainable growth, selling products or services is not enough. More than that, you want your customers to buy into the end to end experience. This includes your company, your values, and your vision. Consumer behaviour has shifted so much that customers are willing to pay higher prices in companies that offer a seamless customer experience. A suitable NPS program can help your company become customer-centric and tune in your processes to get every part of the customer experience right.

3. Boost customer acquisition through brand advocacy

Loyal customers can become your marketing sales department. A successful NPS program helps build a clear picture of your company promoters, and in today’s socially connected era, their reviews and recommendations play a crucial role in influencing prospects. Use this to your advantage by empowering them to speak about your company, actively recommend the experience and help you acquire your next set of customers. You will have an entire department of brand ambassadors driving business growth.

4. Scale customer experience

Superb customer experience is not limited only to your customer success team. When you implement the correct NPS program, your strategies and actions are available across all departments, facilitating a customer-centric policy that improves customer experience across the board. Moreover, NPS programs allow you to triage issues even before they become significant, reducing the amount of support needed in the future.

5. Improve your value proposition

Closing or losing a deal relies primarily on a great value proposition. NPS programs help you refine your offering by understanding your customers’ actual needs and expectations. By analysing your customer feedback, you can identify the features and components of your products and services that they find most valuable. Craft your proposition around these features, and you will increase the odds of prospects becoming your long-life clients.

A well implemented and operationalised NPS program can help fundamental grow and sustain a business. It can also create a clear line of communication with your customers, giving you the exact strategic insights that you need to take your company to the next level of competitive advantage.

*Net Promoter® and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld.

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