How to use Responses to create Retention Models in 2020

So before we jump into How to use Responses to create Retention Models Lets Clear Some Basics first, Shall we?

What is NPS®?

NPS® stands for Net Promoter Score®. It is an index that ranges from -100 to 100 which indicates how willing customers would be to recommend your business to others.

It is considered as an approximate measure of a business’s ability to win and retain customer loyalty.

As a business that is running the Net Promoter Score ® survey, you ought to respond after the customer finishes the survey, This typically comes in the form of a ‘Thank you’ message.

Crafting the right ‘Thank you’ message is vital because their tone and messaging can help nudge the customer turn from being detractors to a passive and ultimately to a promoter.

How is NPS® defined?

Net Promoter Score® focuses on the fair treatment of customers and employees. Unlike traditional accounting that focuses on short-term business profits, NPS® looks at the long-term picture.

It focuses on how well-perceived a business is through the eyes of its customers and employees.

In simple terms, NPS is the business equivalent of the lesson most of us were taught as children: Treat unto others as you would have them treat you.

Walt Bettinger, CEO of Charles Schwab, the global
nancial services
rm says so about Net Promoter Score® —

“The beauty of Net Promoter is that it helps to simplify complex issues and helps people to make the right decisions. It makes people ask themselves: Is this the right thing to do for our customers, and is it economically appropriate for the
rm?”

From what Walt Bettinger has to say and from the overall use of NPS® it can be deduced that the metric helps in meeting four major business requirements.

History of Net Promoter Score®

NPS® is the brainchild of three entities:

1. Fred Reichheld – A business strategist with specialization in loyalty marketing and loyalty marketing model
2. Bain & Co – A global management consultancy that offers business consultancy services to public and private enterprises as well as for not-for-profits
3. Satmetrix – An experience management software provider

The concept of NPS® was first introduced to the world through an HBR article “The One Number You Need to Grow” authored by Fred Reichheld.

The idea of NPS® was to replace the complicated process of running a typical customer satisfaction survey. Net Promoter Score ® boils down the process to a single question.

the responses to which can be used to determine customer satisfaction, and in some cases employee satisfaction as well.

That single question for Net Promoter Score Calculation is:

“On a scale of 0-10, how likely is it that you would recommend [your business name] to your friends, family or business associates?”

Here are a few thank you messages that you can use for your promoters, passives, and detractors. For promoters:

“Thanks for taking the time to give your feedback. We are thrilled to have you as a high-value customer. Your feedback will help us come up with product/service improvements that will make your experience better than what it is now.”

How does the note helps retain customers who are promoters?

The note explicitly mentions that the customer is a high-value customer. This gives the customer the impression that they are exclusive and are valuable to the company more than other customers.

This privilege makes them feel more attached to the brand and also persuades them to promote the brand with their friends and colleagues.

For passives:

“Thanks for taking the time to give your feedback. We will work on each and every suggestion that you have given. You will see a significant improvement in our offerings in the days to come.”

How does the note help retain customers?

The note establishes the company’s notion to work on customer feedback. This will convince the passive customer that all their pain areas have been acknowledged.

The last statement gives an assurance that things will change soon, This helps reduce the possibility of passive customers looking for other alternatives. When the improvements happen and their level of satisfaction soars high, they will ultimately turn into promoters.

For detractors:

“Thanks for taking the time to give your feedback. We will work on each and every suggestion — positive and critical that you have given. Our team might reach out to you in the near future to understand more about the not-so-great experiences that you might have had, Be assured that we will do everything possible to deliver great experiences to you in the near future.”

How does the note help retain customers?

At the onset, it establishes the fact the business acknowledges both the positive and critical feedback given by the customer.

It also indicates that the team might reach out personally to identify what went wrong with each interaction. The final statement gives the assurance that the feedback will be used toimprove net promoter scorewhich ends up improving the experience.