What is the importance of a net promoter score for startups?
- It Assesses The Quality Of Your Startup
- It Gauges Product Adoption
- You Learn Who Your Customers Are
Owning a startup is challenging. There are just so many things you need to consider — surviving competition, existing throughout the volatile economy, keeping up with the trends, all while making your customers happy with your products and services. That is why if you are just starting your business, it’s essential that you know the importance of a net promoter score for startups.
Among other strategies, a net promoter score is a simple, effective, and affordable approach to boost your organization. Today, we will be tackling all about what is a net promoter score and why it is necessary for business growth. Keep reading to learn more.
What Is A Net Promoter Score?
You might be asking, what exactly is a net promoter score? A Net Promoter Score, also known as an NPS, provides you with customer loyalty metrics. More often than not, it measures it by asking “How likely is it that you recommend our services to someone?” and respondents answer by giving a rating — between 0 (not at all) and 10 (very likely).
With their answers, they are categorized into one of three categories:
- Promoters – Respondents with a score of 9 or 10. These are your loyal and enthusiastic customers.
- Passives – Respondents with a score of 7 or 8. These are respondents who are satisfied with your products and services but are not enthusiastic enough to be considered promoters.
- Detractors – Respondents with scores of 0 to 6. Simply put, these are your unhappy customers who are unlikely to make a purchase with your brand again, and may even discourage others from purchasing from your brand.
How Do You Calculate Your Net Promoter Score?
How can you figure out if a customer falls under the promoters, passives, or detractors? To calculate the NPS score, all you have to do is subtract the percentage of detractors from the percentage of promoters.
For example, if 10% of your respondents are detractors, and 20% of them are passives, and 70% are promoters, your NPS calculation would be 70-10, leaving you with a score of 60.
But if you’re lucky enough to have an efficient survey tool, it would be much easier for you to calculate this.
So, how and why is this important for startups?
It Assesses The Quality Of Your Startup
An NPS is an effective way to evaluate the quality of your products and services because it tells you if your products are worth being recommended to. If you have a high NPS, then, chances are, your customers will recommend your product to their friends and talk to others about it.
It Gauges Product Adoption
If you’re starting in the industry, one of the common things you will find yourself struggling with is promotion and advertising. It doesn’t sound smart enough to lash out for advertisement, so its best to look for cost-effective, or better yet, free ways to do so.
This is where NPS comes in. When you have a strong and high NPS, your company has a high chance of scaling. Some NPS survey creators even give respondents incentives to recommend products.
You Learn Who Your Customers Are
Knowing who your customers are is essential if you’re a startup. How are you supposed to know who you’re selling to and how you can further promote to them? With an effective NPS survey, you will also gain data on who is buying from you — their demographics, characteristics, as well as what they like and don’t like.
As a startup business owner, you surely want your business to take off. There are many great strategies you can do, and having a net promoter score is one of them. Realizing the importance of a net promoter score for startups is essential.
There are many benefits to it. It assesses the quality of your startup, paves the way for product adoption, helps you learn and understand your customers better, and measures the loyalty of your customers. Plus, what makes it powerful is that it doesn’t take much to do. All you need is to create a quality net promoter score survey.
Luckily for you, here at Qeryz, we’ve got exactly what you need. Sign up for a free account with us today and run your first NPS survey, and you’re good to go. We make it much easier for you to experience growth.
Aside from that, we’ve also got handy tips you can read! Our blogs contain tons of tips for surveys. From survey structuring to question ideas, you can find everything you’re looking for.