In our eBook, The Definitive Guide to Monetized Net Promoter®, and our most recent infographic, we outlined the four steps to mastering the Monetized Net Promoter methodology. It takes the Measure and Act cornerstones of NPS®, and builds on them to Monetize and Grow. We’ll cover the highlights of these steps, with useful tips on how you can implement them to tie your NPS® with revenue and grow your bottom line.
Step 1: Measure
Measuring your Net Promoter Score® and customer loyalty accurately is crucial to the success of your NPS program. There are several elements to consider when measuring that will help you get the most accurate data:
- Conducting the Best Surveys: There are many tips and tricks you can use to conduct the best and most accurate surveys. One thing to consider is how are you conducting them. The form that your surveys take can affect your response rates. Are you using email, SMS, phone interviews, etc.? How will your medium affect your response rates?
- Analyze Performing NPS surveys is only the first part of measuring: now the results must be analyzed. This is necessary to understand the root cause of your Net Promoter Score. The insight gained here will help you in our next step (Act) for closing the loop. In addition, data at this stage enables companies to improve business processes moving forward. Data is power!
Step 2: Act
Once you’ve measured your score, it’s time to act! In order to act, you must close the loop at all levels of your organization and then optimize by setting S.M.A.R.T. targets.
- Closing the loop Closing the loop ensures that companies quickly rescue detractors from the competition and remedy their customer experience. Customers are 21% more likely to take your next survey if you close the loop. But it’s important to remember that closing the loop must happen on all levels of the organization in order to achieve the most success; from the frontline to the executive level.
- Setting S.M.A.R.T Targets Are your targets S.M.A.R.T? Nope, not smart, S.M.A.R.T: specific, measurable, assignable, realistic and time-related. Setting S.M.A.R.T targets allows you to optimize business processes and set goals to aspire to.
Step 3: Monetize
As you can guess, the monetize step in Monetized Net Promoter is essential to using your NPS score to grow your bottom-line. In order to monetize, you first need to analyze your customer churn and then tie your NPS to your revenue.
- Analyzing churn First, you must understand the reasons for your customer churn. There are three questions to ask: which customers are churning, when customers are churning and why customers are churning. Once you have insight into these three questions, you’ll be well on your way to combating churn.
- Tying NPS to revenue At the end of the day, the goal of any business is to grow their bottom-line. Measuring the customer experience is only one part of that: it must be tied to the revenue. Using proper analytics tools and accessing revenue data are two ways to help you do this.
Step 4: Grow
You’ve measured your NPS score, you’ve acted on your results, you’ve monetized by tying your NPS with your revenue, now it’s time to grow! There are several things that you should be looking to grow, as well as methods for doing.
- What to Grow Three things that you should be focusing on growing are customer retention, referrals and repurchases.
- How to Grow You can grow retention by predicting the likelihood of churn within your customer base, and then determine the value of these customers and the probability of them churning. To grow referrals, utilize referral marketing using your NPS data. To drive repurchases, emphasize up-selling and cross-selling in your strategy.
Once you completed these four steps you’ll be well on your way to mastering the Monetized Net Promoter methodology. Want to know more? Check out the full infographic below, or dive even deeper with our eBook The Definitive Guide to Monetized Net Promoter®.