Leveraging Net Promoter Score in Your Business

We all want our customers to be happy. 'Happy customers are repeat customers.' 'Repeat business is the best business.' What does it actually mean for a customer to be 'happy?' Defining happiness and the pursuit of it might be a little heavy for this paper, so instead we will focus on something that is more concrete and slightly easier to measure – the customer experience.

Customer experience is the compilation of all experiences and impressions that your customer gathers while working with your business, products, or services. It includes interacting with your staff, visiting your website, and everything else in their journey as your customer. Customer experience, not surprisingly, is closely tied to your brand. If you deliver outstanding customer experiences, the chances are your brand equity is equally strong.

Why does customer experience matter? Because it is a top indicator of future repeat business. To put it simply, your fans and happy customers who have positive customer experiences are likely to keep doing business with you, while your disappointed customers may go elsewhere next time they need your product or service.

We know that customer experience is important, but understanding how to actually measure it is a little more difficult. We also know that a decision made without data is just a guess, so we will use data to improve our decisions around customer experience. There are many customer loyalty metrics that have been developed over the years, most notably Customer Satisfaction (CSAT), Customer Lifetime Value (CLV), Customer Effort Score (CES), Revenue per Visitor (RPV), and Customer Churn Rate.

While these are all good metrics and data to know, there is one metric that stands above the rest due to its ability to predict future customer behavior – Net Promoter Score^SM (NPS®). In this paper, we will do a deep dive into NPS and learn how it can be applied to help you understand your customers' experience, improve processes, and ultimately – grow your business.

Tune in next month for the next section from our latest whitepaper "Leveraging Net Promoter Score in Your Business".