What Is NPS® in Retail Industry?
Retail industry is the forefront of all organizational businesses. It’s how a business actually generates revenue. While NPS is a calculator to gauge the performance of that business by measuring how it performs and how loyal the customers are! So, it vital to understand how to benefit from the combination.
Retail market is very diverse. It covers all genres of products and all segments of markets. The basic rule is to approach (attract) the customer before your competitor with your targeted marketing and qualitative product, convince them to purchase it, and retain that customer by providing them a great and satisfying experience. Retail Industry covers physical as well as online aspects. It is also the industry that has to most focus on interacting with the customers. NPS can assist in that. Low or high scores can help in making a customer-centered strategy.
NPS and Brand Loyalty.
NPS asks one question: “how likely are you to recommend our brand to someone?” i.e. it asks about loyalty. Of course loyalty will come only if the overall customer experience has been worth their while. Product leaders aim to maximize the Customer Experience (CX) to convert causal buyers into brand ambassadors.
NPS not only provides an arbitrary score to gauge customer loyalty but also provides insight into the areas that require improvements. Based on how and when the data has been collected, it can be used to identify potential stage wise problems in the systems. Before implementing NPS or any other Customer Experience (CX) measuring tool, a proper strategy is to be made on how to tackle with low scores and improve through them. Visible improvement through actual customer feedback can show sincerity to the customers and can convince them about your seriousness.
Efficient and Quick performance measurement.
Retail industry is a very fast-paced one. Customer frequency is high and revenue flow is even higher. A brand that can maximize their presence in a short time span will eventually get maximum benefit. NPS provides a quick, easy, cost-effective and an efficient method to get focused customer feedback. It helps lowering down the marketing budget too as reliance shifts on organic word-of-mouth promotion.
Due to the easy nature of NPS questionnaire it can be implemented at any stage of the product and customer life cycle. It also be implemented again and again with limited to no cost. Such a diverse nature enables organizations to monitor their Key Performance Indicators (KPIs) regularly with relation to multiple processes and factors. Organizations can thus develop effective Change Management strategies to counter the low scores.
NPS is all about future growth. It has been reported that high scoring NPS organizations are expanding almost twice as faster than their competitors. NPS identifies the problems and builds a strong foundation to develop the future of the organization. It provides a cost-effective yet quick method to deal with problems of such a high paced diverse industry. NPS is the most talked about and required a tool to develop and expand the retail industry.
Head over to this article to learn about (CEM) Customer Experience Management.