What is Net Promoter Score (NPS)?
The Net Promoter Score is a metric that assesses the likelihood of a customer recommending a company or service to others. The scale ranges from 0 to 10, where customers who give a score of 9 to 10 are considered promoters, those who give a score of 7 to 8 are neutral, and those who give a score of 0 to 6 are considered detractors. The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters, resulting in a score that can range from -100 to 100.
How can NPS boost marketing?
Using NPS in marketing allows companies to identify not only the level of customer satisfaction, but also opportunities to improve their communication and marketing strategies. Below are X practical tips for promoting marketing using the Net Promoter Score.
Data-driven decision making
NPS provides valuable insights into how customers perceive a brand, product or service. Using this data to make informed decisions is essential for directing marketing strategies. For example, if a company identifies that a large portion of its customers are detractors, it can reevaluate its communication strategies and marketing campaigns to directly address these customers’ concerns.
Example of national context
In Brazil, Nubank uses NPS as a core metric to guide its marketing decisions. With a consistently high NPS, Nubank has focused on improving customer service and launching products that directly meet the needs of its promoters, such as the no-annual-fee credit card, which has become a differentiator in the market.
Customer segmentation based on NPS
By segmenting customers based on NPS scores, companies can tailor marketing campaigns to each group. Promoters can be engaged in referral campaigns, encouraging them to recommend the brand to friends and family. Detractors can be targeted with win-back campaigns, where the company commits to solving specific problems and improving customer satisfaction.
Success story in Brazil
Amaro, a digital fashion brand, uses NPS to segment its marketing campaigns. The company creates specific campaigns for its promoters, offering discounts and exclusive benefits to encourage them to continue bhutan business email list recommending the brand. For detractors, Amaro implements recovery strategies, offering personalized service to solve problems and improve the customer experience.
Customer loyalty and retention
NPS is a clear indicator of customer loyalty. Companies that focus on improving NPS tend to invest more in loyalty programs, which can range from rewards programs to exclusive perks for frequent customers. By constantly monitoring NPS, companies can identify opportunities to increase retention, keeping customers satisfied and loyal to the brand.
Data on customer retention in Brazil
According to a survey conducted by Opinion Box, companies that monitor and act on NPS have customer retention rates up to 15% higher compared to those that do not use the metric. This shows how paying attention to NPS can be crucial for long-term success, especially in competitive markets like Brazil.
Marketing actions based on feedback from promoters
Promoters are a valuable source of positive feedback and insight into what’s working well. Using this feedback to create case studies, testimonials, and campaigns that highlight customer satisfaction can be a powerful way to attract new customers and build brand trust.
Practical example
Totvs, a Brazilian technology company, uses feedback from its promoters to create case studies that are used in marketing campaigns. These studies demonstrate how Totvs solutions have helped other companies achieve their goals, strengthening the brand's image as a market leader.
Implementing recovery strategies for detractors
Detractors represent a risk to a brand’s reputation, but they also represent an opportunity. Companies that adopt proactive strategies to win back these customers can turn detractors into promoters. This can be done through improvements in customer service, resolution of reported issues, and open and transparent communication.
Recovery case in Brazil
Itaú Bank is known for its proactive approach to detractor recovery. By monitoring NPS, the bank identifies dissatisfied customers and offers personalized solutions, such as debt renegotiation or service improvements, resulting in a significantly high conversion rate from detractors to promoters.
Integrating NPS with other marketing metrics
Integrating NPS with other marketing metrics, such as conversion rate and return on investment (ROI), can provide a more holistic view of brand performance. This integration allows companies to correlate customer satisfaction with the success of their marketing campaigns, adjusting strategies as needed.
Benefits of integration in Brazil
Companies like Magazine Luiza have been using NPS integration with sales and conversion metrics to optimize their digital marketing campaigns . This allows the company to identify which campaigns are most effective in increasing customer satisfaction and, consequently, boosting sales.
Internal communication guided by NPS
NPS can also be a powerful tool for improving internal communication within a company. Sharing NPS results with all departments can foster a culture of customer focus, where all employees understand the importance of customer satisfaction and work together to improve the score.
Internal application example
Brazilian cosmetics giant Natura uses NPS to guide its internal communications, ensuring that all employees, from the production line to customer service, are aligned with customer satisfaction goals. This results in a more consistent and positive experience for customers, reflected in a high NPS.
The Net Promoter Score is much more than a simple satisfaction metric; it is a strategic tool that can transform a company’s marketing. By following the tips presented, companies can not only improve their NPS, but also use these insights to boost their marketing campaigns, increase customer loyalty and, ultimately, drive sustainable growth. In the Brazilian context, where competition is fierce, the effective use of NPS can be a significant competitive differentiator.
