Today, the main focus of organizations is on customer retention rather than customer acquisition. And one way of putting this approach into practice is via online communities.
Building a strong army of loyal advocates is what every brand desires.
Online communities, hands down, are the perfect medium for brands to offer customers the true value of their investment.
It’s true that with communities in the corner, brands get the opportunity to analyze their customers’ preferences. But how does one assess the overall sentiment of its customers in combination with communities?
Enter – Net Promoter Score (NPS)!
If you’re familiar with the term and are already tracking it, give yourself a pat on the back! But if you’re not familiar with its application in communities, we’re here to help. Let’s roll the dice, shall we?
What is Net Promoter Score (NPS)?
Net Promoter Score is a metric that brands leverage to ascertain how loyal customers are to their brand. Sounds confusing?
Well, calculating NPS is simple.
All you have to do is ask your customers about their experience with you and how likely they are to recommend your services/products.
Let your customers rate your services on a scale of 1 to 10. If the customers give you a rating of 9+ or below 6, consider them as enthusiasts or detractors of your brand respectively. Now, subtract the number of detractors from the number of enthusiastic customers. If you receive a positive score, consider your services good. If your average score is above 50, think your services to be exceptional.
The Importance and Application of NPS in Online Communities
NPS makes use of a method known as “Closing the Loop”. According to this concept, an organization transforms the negative perception of the customers using the results revealed in the NPS test. This is where an online community can help.
Today’s informed customers are now more vocal about their experiences with a brand. They don’t think twice before posting negative or positive feedback. An online community gives them the platform to participate in open discussions and voice their opinions.
Remember, an online community will not increase your NPS score. Here’s what you will experience:
1. Your customers will get a platform to share authentic feedback. This way, you will be able to understand their preferences and deliver the services that they expect. This will not only boost the NPS but also take CX a notch up.
2. You will get the opportunity to build genuine relationships with your customers. You can respond to feedback and adopt a humanized approach. This way, your customers will be able to resonate with your brand and become your biggest advocates.
3. Your community becomes an outlet for your customers to discuss the latest product features, updates in product versions, announcements, and a lot more.
Using NPS in Your Community
Typically, NPS is asked in a survey form. However, you can utilize NPS questions after any kind of program or action your community member takes. For instance, when new members join your online community, you can send an automated survey on their 100-day anniversary to ask how their first few months have been with you.
How likely is it that you would recommend ‘Our XYZ Community’ to a friend or colleague?
If you have a community, but no insights about your products/services, ask for user sentiment! Start a discussion or an entire forum category for product/service feedback and ideas.
By measuring such areas, you can understand the value your community is adding.
When your customers perceive your organization as a collection of users who share unfiltered opinions and thoughts, that’s when you win their trust. As a result, they are more likely to recommend you to other people. That’s when you will experience a boost in your NPS and conversion rate.
Wish to Take CX a Notch Up With Cutting-Edge Communities? Talk to Us!
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