Why is it important to know who your unhappy customers are? Research shows it costs five times more to acquire a new customer than to retain an existing one. Your at-risk and unhappy customers could be costing you more than you think.
Customer satisfaction is the key to long-term loyalty, which in turn equates to increased engagement, retention and customer lifetime value. As retailers, we spend large amounts of time and money building strategies around customer service, but how do you measure your results and identify whether campaigns are working?
With our free Net Promoter Score app you can ask customers to state how likely they are to recommend a company or product to their friends and family, using a number between zero and 10. This allows you to instantly gauge how satisfied your customers are with their interactions with your store.
Focus your marketing activity based on your NPS customer segments
The data provided by the Net Promoter Score app will allow you to identify who your advocates and at-risk customers are.
These customers have given you a low score (0-6), indicating that they could be at risk of churning. Neglecting your unhappy, at-risk customers can be costly, as research shows that happy customers will tell nine friends about their experiences with a brand, but an unhappy customer will tell an average of sixteen.
Now that you have identified these customers, you can start taking steps to win them back. Engage them and show them that you care by offering incentives to return to your store in the form of loyalty points and rewards.
Your most loyal customers are your biggest brand advocates, so understanding who they are and nurturing them is a no-brainer. Research shows customers are four times more likely to buy when they are referred by a friend. Advocates can be extremely valuable in this way as they are more likely to review your store and refer friends to your store. Use your loyalty program to encourage this activity.
Learn which activities and marketing strategies have positively impacted your customer satisfaction
Micheal Lebouef famously said “a satisfied customer is the best business strategy of all.” Customers who leave high scores are more likely to repeat purchase, increasing loyalty and lifetime value. Monitoring changes to your NPS over time will help you track how your customers react to different marketing strategies and campaigns.
The Net Promoter Score is a tool which is effectively used by many businesses to increase and monitor their customer’s levels of satisfaction. Having the ability to find your unhappy customers and turn them into advocates is a cost effective way of building strong loyalty for your brand, increasing customer engagement, retention and customer lifetime value.
Find out more about our NPS app and install it for free here
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