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Why Online Reviews Are More Powerful Than NPS

 

May 29, 2019

How Online Reviews Can Add To The NPS In Measuring Customer Satisfaction

There has been much ado about The Net Promoter Score (NPS). So much, in fact, that it’s widely perceived to be the single most reliable measurement of company growth and many brands use this recommendation-based technique to quickly assess customer loyalty and satisfaction. You can think of the NPS score as a kind of “future word of mouth” index for a business.

But despite its widespread adoption by brands throughout the business world, the debate about whether the NPS is truly the most reliable indicator of future success goes on. And we argue, there is an even more reliable indicator of future success: your brand’s online reviews.

But first, what is the Net Promoter Score?

Most people are too busy or not willing to answer lengthy questionnaires these days. So how do you get simple feedback that lets you know exactly how happy they are with your brand’s service? You ask them a simple question: “How likely is it that you would recommend this company to a friend or colleague?”

The idea behind the NPS is that this one question reveals a lot about how your customers perceive your business. Answers come in on a scale of  0 – 10, with 0 meaning “Not At All Likely” and 10 meaning “Extremely Likely.” Here’s the breakdown:

  • Those who give 9’s and 10’s are “Promoters” (Raving Fans)
  • Those who give 7’s and 8’s are “Passive” (Neutral)
  • Those who give 0’s – 6’s are “Detractors” (Not Really Fans)

The percentage of “Detractors” is subtracted from the percentage of “Promoters” to get the Net Promoter Score. (Those in the middle, according to this system of measurement, don’t seem to mean much.) Monitoring your NPS over time is a process that’s supposed to give you a quick overview of the health of your business in terms of customer satisfaction.

An Alternative To The NPS: Online Reviews

But what if there is another—better—even more reliable measurement of both customer satisfaction and future growth and performance. Here’s our perspective: the NPS is a great tool, yes. But on its own, it’s incomplete. It’s a number collected through a survey. It’s not what your clients and customers are actually saying in the real world, where people can hear them. It’s what they’re saying privately and, often times, anonymously.

Online Reviews, on the other hand, are real-time accounts of what people are saying about your brand. And other people can read these reviews and actually be influenced by them right now—and into the future. Customer review websites such as Google, Yelp, Amazon, and Facebook are examples of the “Net Promoter Score” idea in action. What people write about your brand has a huge impact on your reputation, repeat/renewing customers, and the generation of new business. This makes online reviews a pretty rad performance indicator, don’t you think?

Why Customer Satisfaction Matters

What gets measured gets improved upon. When it comes to customer satisfaction, this couldn’t be more true. Here’s an interesting statistic: for every complaint your company receives from a customer, there are approximately 26 other people who are unhappy with your brand and say nothing. People are polite and loath to complain, which is why so many choose to zip it. But that silent demographic of clients is who you will most likely lose if you don’t take corrective action.

If you’re not tracking your customer feedback in a measurable way, you’re putting your business at risk. In addition to losing valuable clients, relationships, and revenue, low customer satisfaction levels harm your brand’s image. (Those 0’s – 6’s are called “Detractors” for a reason.) This is especially true when it comes to publicly posted customer complaints, which tend to have a viral impact on your online reputation.

Luckily, reviews written by your raving fans have an impact on your brand’s reputation as well—a very, very positive one! Customer satisfaction measurement tools can help you collect and monitor this valuable feedback—the negative and the positive—so that you can make the changes and improvements your customers are asking for. Which means a better experience with your brand, a more pleasant customer journey, higher retention, and more revenue for you!

Want Help Managing Your Business Or Brand’s Online Reputation?

We can help! Reputation Studio is an Enterprise Online Reputation Management (ORM) platform that consolidates customer reviews into one dashboard, automates the routing of reviews to teams, posts responses in real-time, and applies AI to provide actionable insights and track the sentiment and intent.

Contact us today for a demo.