Most leaders in sales have at least one thing in common, which is the challenge to keep a track of the performance of their sales teams.
Now there are several articles that have already been written about KPIs and sales metrics found in easy to use CRM tools that can offer sales managers suggestions and advice about which metrics they should leverage to address this aforesaid challenge in sales.
Nevertheless, in this article we as one of the most popular vendors of Salesforce Alternative CRM solutions let us cover one of the metrics that we are specialized in- Net Promotor Score.
Most firms use Key Performance Indicators of KPIs to track the performance of their teams, business, or people against their goals.
Now NPS is one of those sales metrics that is used to measure how likely it is that your customer will recommend your brand’s offerings to someone else.
Now, this metric is particularly interesting as it illustrates the customer’s perspective rather than merely explaining the sales figures in business.
This is because the salespeople who are competitive in their approaches might oversell an offering and even make promises for that which the product or service may not fulfill in terms of its features and functionalities.
This can happen because of the pressure that the salespersons often face to meet their sales quotas, earn more commissions, and more.
Nevertheless, whatever may be the case NPS found with the help of an easy to use CRM can serve as vital metrics to access whether the customer is satisfied with the offering that the company has sold to its customer.
Now a negative NPS score in an easy to use CRM cannot only occur just because of the person who sold or delivered the product. Rather it can also happen because the product itself is not what the customer expected it to be.
This is how NPS works…
To do a NPS survey with an easy to use CRM tool brands need to simply ask their customers to provide them a rating from 0-10 where 10 implies that the customer is very likely to recommend the brand to others and 0 if they consider that they do not.
There are three categories that the NPS survey participants fall into:
Promoters (9-10): You might consider any customer in the survey that provides this score as your brand’s best friend who is most likely to be a returning customer or will not hesitate to refer others to your company.
Passive (7-8): Customers who provide this score can be considered to be satisfied but not necessarily a loyal customer of your company. Therefore, they are likely to buy from your competitor if the opportunity is right.
Detractors (0-6): These are the customers who really do not like your company, brand, and your offerings, and so detractors can not only look elsewhere in the future to do their business but even might tell others not to buy and avoid your brand. Therefore it can be assumed that these people have a negative impact on your brand.
Sometimes NPS surveys even include open-ended questions whereby businesses can ask the respondents in the survey what is their primary reason behind providing the score. However, this question is often a conditional one meaning that it only appears in the survey once the customer provides a score below a certain threshold, such as below 5 (detractor).
Now if you are interested to know about the timing and the frequency of these NPS surveys, in such a case the answer is: it depends.
For example, one of our former customers and a car dealer who used our CRM software did send an NPS survey to everyone who did a test drive or bought their car.
While there are several people who might say that if a customer is new you should not send out a survey immediately, nevertheless while this opinion might have some truth, however, it really depends on what your brand is offering.
Now about the frequency for sending surveys, it is important to remember that you do not bombard the customer with multiple surveys and so we recommend sending an NPS survey to your customers every 3-6 months.
This is because sending a survey invite less frequently increases the probability that your customers will answer your survey, and thereby boost the response rate.
Finally, once you have done your surveys to calculate the Net Promotor Score you need to subtract the percentage of Detractors from the percentage of the Promoters and associate them with your sales reps or sales teams, which can be automatically done once you use an easy to use CRM software as your NPS survey tool.
Therefore if you also intend to use NPS for your business growth , or if you would like to apply it in other areas of your business, we have written this article about how simple it can be to implement it from a technical perspective, so that you can leverage this important metric in order to improve your sales and customer service right away.