Every salesperson knows how important it is to retain an old customer. For one, acquiring a new customer in place of an old one means you have to start the whole process all over again – from lead acquiring to convincing them and more.
As the series of events go, retaining a customer is comparably easier and less costly. According to a report,” the probability of selling to an existing customer is 60-70 per cent. The probability of selling to a new prospect is 5-20 per cent“.
Now the best way to retain your old customers is by using Net Promoter Score (NPS) surveys. Net Promoter Score not only serves your purpose of retaining old customers but also helps you to generate new leads and close more deals.
In this post, we will talk about how to retain your old customers using net promoter score. But before that let’s see what it actually is.
What is the Net Promoter Score?
Net Promoter Score is collected through a survey which gets the insights from the participants and discerns what are the chances that the participants would recommend your product or services to a friend or a colleague.
The answers are broken down into three categories:
- Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, thus in this process fuelling growth.
- Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings and might switch to your competitor.
- Detractors (score 0-6) are unhappy customers who can damage your brand and impinge on your growth through negative word-of-mouth.
To calculate the actual Net Promoter Score all you need to do is subtract the percentage of detractors from the percentage of promoters. It’s a number that ranges from -100 to 100.
The better your net promoter score is, the better is your customer feedback. After the users are asked for their scores they are asked another important question – why they chose that score?
All this information can turn out to be a great deal important for you and your business.
Retain Old Customers Using Net Promoter Score
So how will you utilise the acquired net promoter score in your favour? Let’s have a look!
1. Follow Up With The Detractors
While focusing on your satisfied customers is important, what is even more important is to allay the doubts and worries of the customers that are not as satisfied with your services, that is the detractors.
So what can you do to rectify the mistakes or whatever it led the detractors to give out negative reviews and comments?
First and foremost, send a personalized “follow-up” email to each of your “detractors” and address their bad experience with your service. One of the best ways to make up to a customer is by providing them with a discount coupon or a free package option to attract them towards your brand again. But don’t rely on these additional factors only.
The main motto is to address the real issue. What went wrong that they not only left your brand but also gave negative reviews? This along with the additional offer will compel your old customers to consider giving you a second chance.
Now once you have convinced your old customers to continue to deal with your again, send a second Net promoter score survey after some time has passed in order to see whether their opinions have changed. Following up with detractors is also a good way to identify larger business-wide issues.
2. Ask For More Sales Referrals From “Promoters”
If statistics are anything to go by, business referrals are one of the best, not to say an inexpensive way to generate new leads and re-engaging old customers.
Here are some interesting statistics that resonates with the aforesaid statement:
- Word of mouth is the primary factor behind 20-50% of purchasing decisions.
- Business to business companies with referrals have a 70% higher conversion rate, and they report a 69% faster close time on sales.
And the best part is that even the satisfied customers actually have no qualms about giving a positive referral. According to a source, 83% of consumers are willing to refer after a positive experience. But here’s a catch – out of 83% of willing customers, only 29% actually take the final step of giving the referrals.
This is where net promoter score comes into play. Using the net promoter score survey, you can easily identify the customers who are more likely to provide referrals. Based on the survey, you can then encourage the “promoters” to give out a positive referral.
Such positive referrals will compel the old customers to question whether they did the right thing by discounting your services.
3. Use as a Product Development Tool
There’s must be a reason why your old customers are not inclined to do business with you again. One of them might be the fact that they feel that your product or services need improvement. And net promoter score can also be used as a “product development tool” that can be used to improve your product and services.
Now the best way to do that is to run a Net Promoter Survey and ask open-ended questions like – “How likely are you to use our product or service again?” You can also include another supporting question to get a better insight like “Why and why not?”
Note downing analyzes each response very carefully so that you don’t miss out on the feedbacks that might suggest some improvement. Once you have stored each and every answer carefully, calculate the Net Promoter Score for each of the product or service. Then observe which product or service got the maximum number of negative feedbacks and the least Net Promoter Score.
This way you know that which of the products or services need the maximum work and improvement so that in your follow up emails (pointed out in first sub-head) you can address the issues accordingly.
At first glance, Net Promoter Score surveys don’t seem to be of much importance, however, when you conflate it with your customer retention strategy it can prove to be indispensable. You can prompt your satisfied customers or “Promoters” to give positive feedbacks to retain customers.
Furthermore, you can gauge the anomalies analysing the censure that you have received. Don’t look at Net Promoter Score to be just another milestone to be achieved – use it as a way to retain your old customers and improve customer satisfaction.