The Net Promoter Score (NPS) is a globally used method for measuring an organization’s customer loyalty. The NPS score can be any number between -100 to +100. A positive NPS is any score above 0; this means that as an organization you have more promoters than detractors (the critics). So the higher the positive NPS, the more enthusiastic customers who recommend the organization to others. In contrast, a negative NPS (score below 0) indicates increased dissatisfaction (more detractors) and possible customer loss. That, of course, is not something you want as an organization. But is a negative NPS as bad as it seems?
Starting point for growth and improvement
No, it’s not as bad as it seems. Of course, a negative NPS is not ideal, but it provides valuable insight into key areas for improvement. Negative feedback is the starting point for progress. It gives your organization the opportunity to specifically optimize products, services and/or processes to improve customer satisfaction.
Customer retention and loyalty
A negative NPS can cause you to lose customers. But it also provides an opportunity to show them that you take feedback seriously. Actively listening and working with the areas for improvement will restore/create trust and turn your customers into ambassadors. Showing commitment to addressing problems can have a profound impact on the customer relationship.
Also, continuously improving the customer experience can set your organization apart from competitors.
New opportunities to grow
Improving a negative NPS challenges you to come up with creative solutions and explore new approaches. As a result, you work to meet expectations for each touchpoint in the customer journey.
In short, turn a negative NPS into an opportunity for your organization to learn and innovate. It gives you a starting point with valuable insights and enables an organization to make customer-centric changes. This will benefit the entire customer experience and business performance.
Getting started on improving your NPS? We’re happy to help you with that. Read our tips to improve your NPS here and download our brochure here.
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