You take great pains to acquire your customers. In business terminology, we use the term `customer acquisition cost` associated with the amount of resources used or spent in order to get them onboard. But how many of these customers can act as your advocates? How many of these are likely to churn or even worse, discourage others from being your customers? For knowing this, you need to find out the NPS score of your business. NPS stands for Net Promoter Score.
What is NPS all about?
In the world of cut-throatcompetition, customers are spoilt for choice. You need to take great efforts to retain their trust so that they become repeat customers for your business. It is important to keep them satisfied so that not only are they discouraged from churning, but also so that they may recommend your business to others. Many decisions in business need to be taken on the basis of quantifiable data and that is why we use NPS as a parameter. It basically involves asking customers about their likelihood of recommending your business to others, as rated on a numerical scale.
In order to get the best results, this survey needs to be as comprehensive as possible, so it is essential that you have up-to-date contact information of each of your customers. In the responses that you obtain, some customers may clearly stand apart as being promoters, whereas many others might be classified as being detractors for your business. When you use online form tools to undertake such surveys, it becomes easy to calculate the difference between these two groups of customers, which gives you your NPS.
How can knowing my NPS improve my business?
We live in an age where data is the new oil. It pays to be well-informed so that you can take better decisions in your business. If some customers are totally happy, you need to know what did they like about your product/service etc., so that you can be sure about continuing to offer the same. If some customers seem to be dissatisfied with your brand, you need to know where there is room for improvement, so that suitable remedial measures can be undertaken.
Both of these can be done by including questions in your form asking the respondents to elaborate on the reason behind their rating. It might also be that you serve customers who have a varied nature of needs and interests. They may belong to a specific age group or a specific gender, etc. This information too can be sought in the form, so that you know where to focus your efforts on. But this information is often sensitive and not many customers feel compelled to give it away, hence you need to offer them a well-designed and attractive form which asks questions one at a time, making them feel as if they are having an informal dialog instead of having to attempt a test. For this, online form tools are the best option.