Getting customers is hard so why not try to keep the current ones even longer? Keeping them should be easier than getting new ones. You know them already, you know what they want and you know what they expect of you – or do you? With fierce competitors building communities and aggressively marketing on price, you have to put real energy and effort into maintaining a consistent customer base. Just providing a great product or service is rarely enough to keep them coming back for more. You need to be able to create real customer loyalty. Loyal customers are those ones you want to have. And actually, according to White House Consumer Affairs It is 7 times more expensive to find a new customer than to keep an existing one and on average, loyal customers are worth up to 10 times as much as non loyal customers!
In the world of data, Net Promoter Score or NPS has risen to be one of the most used metric to measure customer experiences. To jump right in to it, the Net Promoter Score is a particular statistic that some researchers propose can predict whether overall customer loyalty will encourage your business to grow or not. The main idea of NPS is alluringly simple. Take the percentage of customers who are highly likely to recommend you (promoters), subtract those who are disinclined, indifferent, or only somewhat likely to give you good word of mouth (detractors). There you have it: %P – %D = NPS. The prediction is that a higher score allows for better top-line growth. Continue reading “What is a Net Promoter Score (NPS)?”