We all know the importance of high customer engagement. A company can reap plenty of rewards from engaging its customers, such as higher customer loyalty, higher retention rates and less attrition. But what about improving your products and services by engaging your customers? Is that even possible? Read below to find out more:
1. Net Promoter Score
How can you use the Net Promoter Score (NPS) question to increase your customer engagement and to improve your products and services? You would be surprised by how easy this is!
First of all, let’s have a quick reminder about what exactly the Net Promoter Score is.
Net Promoter Score (NPS) is a metric used to predict customer purchase and referral behaviour. The question used to determine NPS is:
“On a scale of zero to 10, with 10 being highest, what’s the likelihood that you would recommend us (our company) to a friend or colleague?”
This question is almost always included in all surveys send by companies to their customers to gather feedback. The reason for this is that this question is different from others which measure customer satisfaction. In fact, NPS measures customers’ loyalty in general towards your company and brand. This gives valuable information about the potential for sustainable growth through word-of-mouth marketing.
Having a positive NPS means that you have more customers organically recommending your company than people discouraging others from buying from you. Thus, you can identify how much of your profits come from healthy, sustainable relationships, and how much is at a risk of churning.
Most importantly, you should always follow an NPS question with open-ended questions (e.g. “Why?”, or “What would it take our score by just one point?”). This will give you more insight into why your customers answered the way they did. This way, you can learn how and what to improve in your products and services. You can easily see which features are working well or what your customers wish was added. Therefore, using NPS is probably one of the best ways to perfectly match your products and services to your customers’ wants and needs.
To get even more detailed information about Net Promoter Score, check out our previous article on the topic “What is Net Promoter Score and How to Use It?”
2. Feedback and reviews
Continuously asking for reviews is a great way to improve your products and services! However, you will have to be proactive and send feedback survey requests on a regular basis. Ask your customers for feedback on the products or services they have used. However, don’t do this just once in the beginning when they purchase the product. Instead, give them an appropriate time to test it and form an opinion. Based on your industry and products, consider sending a survey request at the 6- and 12-month mark, so that you can see how the opinion of your customers changed over time.
Most importantly is to use a variety of metrics (not only NPS) to get insights from your customers. Thus, you will get a full picture of what functionalities they are actually using and what they wish that you offered.
3. Go beyond collecting and measuring data
Even though collecting and measuring data is a crucial part of the process, if you want to be successful you will need to go beyond that! Think about how to interpret the data in the right way so that you can take action and improve your products and services. Moreover, by involving your customers in the product development process, you show them that you care about their opinions. Therefore, listening to what they have to say is not enough, you have to also act on it! Once you undertake any changes based on your customers’ feedback, make sure to make it known. Thus, your customers would feel more encouraged to leave you further feedback and their involvement will be higher.
In conclusion, staying in contact with your customers and building long-term relationships with them is crucial for the success of any company!