Knowing Your Net Promoter Score Can Help Your Business

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Few things are more important in business than customer opinions, as they help entrepreneurs shape strategies for product development, sales, marketing and customer service. One of the best gauges of customer opinion is the Net Promoter Score (NPS), which is based on a simple question: How likely are you to recommend <COMPANY> to a friend or colleague?

The question yields an easy-to-understand metric that categorizes customers as Promoters, Detractors or Passives. Scores are calculated by subtracting the percentage of Detractors from the percentage of Promoters.

To survey their customers, small businesses can take advantage of free or low-cost online software provided by companies like SurveyMonkey, QuestionPro and wouldrecommend, some of which have NPS features built right in.

But it’s what you do with your NPS, not the score itself, that is the key to improving your business. As Customer Experience Professionals Association Chairperson Bruce Temkin notes, companies must ask the right questions of the right clients at the right time so they can understand why customers are Promoters, Detractors or Passives. Understanding those reasons is the first step toward a higher NPS — and more loyal customers.

Adapted from Using Net Promoter Score to Improve Customer Experience at Enterprise Apps Today.

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