Guest Post: Why Should Your Customer Service Team Care About NPS?

This week, we feature an article by Simona Benetinová, content manager at Nicereply, a company that helps organizations of all sizes provide outstanding customer service. She writes about customer loyalty and why your team should care about your brand’s Net Promoter Score.

Remember the last time when you bought a new phone, trainers, or cosmetics? I’m guessing you didn’t think long and chose your favorite brands. That’s what we commonly call brand loyalty.

Let’s have a look at the numbers. Did you know that:

• More than 90% of iPhone users are loyal to Apple.
• A 5% increase in customer retention increases profits by 25-95%.
• It’s estimated that new customers cost five times more than loyal customers.

Good customer service is a strong pillar of customer loyalty. It’s one of the most important factors that predict your future success. One of the best practices of how you can keep an eye on it is implementing the Net Promoter Score metric into your customer surveys.

In this article, you’ll find all the important information related to customer loyalty and why your service team should care about NPS.

What is customer loyalty?

Maintaining customer loyalty is simple, but not easy. You can have a perfect product and a giant marketing budget. But until you don’t invest enough effort, time, and money to make your customers happy, the business won’t survive.

Customer loyalty means that you continuously convert your visitors into customers. These customers come back to you again and again. The best scenario is that your customers recommend you to others and talk about your perfect service (or product) with enthusiasm.

Example of NPS survey by Nicereply 

Why is customer loyalty important?

It may never have occurred to you that customer loyalty impacts all metrics of customer satisfaction. As we mentioned before, new customers are more expensive than those who already know your brand. It’s much easier to keep your existing customers happy than to convert a new one. Loyal customers are (not only) economically better for your business. The stronger your customer loyalty is, the faster you grow.

Why should your customer service team care about NPS?

If there is someone who can notice a red flag of an unhappy customer, it’s your customer service manager. In customer service terminology, we recognize 3 groups of your customers. Based on their responses, there are:

• Detractors
• Passives
• Promoters

If you want to maintain a high NPS, your main goal is to have as many promoters as possible.

Find out what the average NPS is in your industry to help you determine whether your team is performing well. You may think you have a low score, but you are actually doing very well in your field.

NPS survey questions are always related to your brand. Opposite to CSAT, NPS focuses more on a long-term relationship or perception of your brand more than on current experience.

Usually, you might see NPS surveys with questions like:

• “How likely is it that you would recommend XY company to a friend?”
• “How do you describe our product/service to your peers or team?”
• “What is the most important value you gain from our product/service?”
• “What do our competitors do better than we do?”

What is a lifetime value & why does it matter?

Lifetime value expresses the amount of money that customers spend on your brand. And it’s not a surprise that loyal customers are the ones who spend more with you over time.

To keep your customers as long as you can, make sure that you are working on these activities:

• Make sure that your brand is attractive enough to your target group.
• Listen to the requests of your current customers, but also remember the wishes of customers who didn’t convert in the past.
• Keep an eye on your churn rate and do regular reviews to make sure it doesn’t exceed your strategic limit.

Remember, collecting, analyzing, and interpreting data correctly is the key to maintaining customer loyalty. There are many tools that can help you with that.

How to choose a feedback tool for measuring NPS?

There are many tools on the market that are dedicated to collecting customer feedback. Start with proper research, including these steps:

1. Look at reviews on the websites like Capterra, G2, or Trustpilot.

2. Compare the pros and cons of each tool.

3. If you still have some questions, talk to the customer success team of the company you are considering.
4. The best way to find out if something works for you is by trying it! Create a free trial and see results.

Conclusion  

We can talk about the best practices in customer service for hours. No matter what field you want to build customer loyalty in, there is one element that always works. It is to consistently exceed customer expectations. Measuring your NPS is one of the best ways to do it, which is why your customer service team should care.  

Simona Benetinová is a content manager from Nicereply. She enjoys everything related to marketing, the digital, and technologies.