ATLANTA, GA / ACCESSWIRE / August 19, 2020 / Asking the right questions is key to being a strategic leader. Leaders must be able to both gain understanding on the status of the business and reinforce strategic focus through the questions they pose to their team. Out of all of the questions a leader must keep a pulse on, one of the most critical questions to understand and repeatedly ask is, "What do my customers think of our business, and would they recommend our services?"
A customer's experience with a company and brand not only dictates their likelihood for repeat purchase, but also if they will serve as advocates or detractors of the brand. Word-of-mouth has long been considered an important marketing tool, but the opinions of former customers also have real sales impact. According to the report, Chatter Matters, 83% of Americans are more interested in purchasing a product or service when they've received a verbal recommendation from a friend or family member.
"Getting a sense of how people talk about and advocate for your business is crucial in acquiring and retaining loyal customers," says Deepak "Dee" Agarwal. "This information not only reveals what products and services matter most to customers, but where to best make marketing and customer acquisition investments."
While social media listening and customer review site monitoring can provide valuable insight into what consumers think of a brand, one of the strongest tools businesses can employ is the Net Promoter Scores(NPS). NPS is a management tool that provides data and visibility into the strength of a brand's relationship with its consumers and their likelihood to recommend the brand. NPS scores range from 1-10 with scores ranging from 9-10 representing promoters/advocators and scores 1-6 signifying detractors. Scores 7-8 are considered neutral.
"Net Promoter Scores not only provide visibility into the health of customer relationships, but also valuable insights on the growth prospects of the company," explained Deepak Agarwal. "Studies have shown that a 7-point increase in NPS correlates with a 1% increase in revenue."
Earning a high score, however, is not an immediate guarantee of success. Even businesses with strong NPS can see declines in times of industry shifts or retraction. In those times, having a strong base of customers becomes even more important -- which is why NPS should be used as a tool to inform customer acquisition strategies.
"Customer acquisition is arguably the most important factor in running a successful business. It is also typically the biggest expense and is a perpetual pursuit," said Deepak Agarwal. "Even if you have a high NPS score, don't rest on your laurels. Companies must be committed to continually delivering a ‘wow' experience to every single customer with every single interaction if they hope to build and maintain a strong customer base of ambassadors."
For more expert business tips from Deepak Agarwal, read Top 5 Tips to Master Social Media in Online Retail.
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SOURCE: Deepak Agarwal