ATLANTA, GA / ACCESSWIRE / October 18, 2020 / In today's market consumers have more power than ever before. With the expansion of eCommerce and social media, consumers can not only access a wider variety of products but also promote and share their consumer experience with their entire social network with just a click of a button. In a world where word-of-mouth travels almost instantly with little to no barriers, you must monitor what is being said about your brand online.
"Observing brand sentiment and making pivots where necessary is a major part of business strategy," says Deepak Agarwal, entrepreneur, and c-suite executive of several major online retailers. "When you're in business, no one's opinion matters more than that of the consumer. Word-of-mouth can have a major and almost instant impact on your brand's positioning."
According to a Chatter Matters report, 83% of Americans are more interested in purchasing a product or service when they've received a verbal recommendation from a friend or family member. Just as a positive experience can result in additional sales, one negative review can sway potential customers from purchasing and have a detrimental impact on sales.
While social media listening and customer review site monitoring are valuable tools that give businesses insights into how consumers perceive a brand, one of the most meaningful pieces of data businesses can utilize is the Net Promoter Scores (NPS). NPS is a management tool that provides data and visibility into the strength of a brand's relationship with its consumers and their likelihood to recommend the brand. To calculate Net Promoter Score, businesses pose the simple question, "How likely are you to recommend our product or services to friends and family?" NPS scores range from 1-10 with 9-10 representing promoters/advocators and scores 1-6 signifying detractors. Scores 7-8 are considered neutral.
"Net Promoter Scores not only provide visibility into the health of customer relationships but also valuable insights on the growth prospects of the company," explained Deepak Agarwal. "Studies have shown that a 7-point increase in NPS correlates with a 1% increase in revenue."
While the metric is an important diagnostic measure of brand health, earning a high net promoter score is not necessarily a guarantee of success. Even businesses with strong NPS can see declines in times of industry shifts or retraction.
"Businesses must be attentive and responsive to unexpected shifts. Even if you have a high NPS score, do not allow yourself to get too comfortable. Companies must be committed to continually delivering a ‘wow' experience to every single customer with every single interaction if they hope to build and maintain a strong customer base of ambassadors."
For more expert business tips from Deepak Agarwal, read Deepak Agarwal on ROI-Driven Customer Acquisition.
SOURCE: Deepak Agarwal
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