A Net Promoter Score (NPS) is a marketing research tool developed to gather feedback from respondents as to how likely they are to recommend a company or product to others. The use of NPS has grown exponentially in recent years as companies seek to measure and improve customer loyalty. In fact, NPS has become the standard for measuring customer satisfaction and predicting business growth.
While most companies use NPS to track customer satisfaction, few are aware of the benefits that a good NPS can have for their business.
What Is a Good Net Promoter Score?
The creators of Net Promoter Score suggest the following: above 0 is good, above 20 is favorable, above 50 is excellent, and above 80 is world class. Although a perfect score of 100 is impossible for any organization to achieve, the goal is to get a score as close to 100 as possible.
A good Net Promoter Score is essential for any business, but especially for dealerships. A high NPS indicates that customers are satisfied with their experience and are likely to recommend your dealership to others. Conversely, a low NPS can be a warning sign that something is wrong and that customers are unhappy.
There are many benefits of having a high NPS, including increased service sales, lower marketing costs, and improved employee engagement. A high NPS can also lead to improved public image and reputation. Here are eight reasons why a good Net Promoter Score is vital for dealerships like yours:
1. A Good Net Promoter Score Means Happy Customers
The most obvious benefit of a good NPS is that it means your customers are happy! Happy customers are more likely to return to your dealership for future maintenance services and repairs, and to recommend it to friends and family. They’re also less likely to look for car maintenance elsewhere, or switch to another dealership altogether.
2. Strong Customer Loyalty
NPS measures the loyalty of a customer. Customers who are satisfied with their experience are more likely to remain loyal to the dealership, even if they have a bad experience in the future. This loyalty can lead to repeat business.
3. Tracks Change Over Time
NPS can be used to track customer satisfaction over time. This is important because it allows dealerships to identify trends and make changes accordingly. For example, if the NPS score decreases, it may be an indication that something has changed that is causing customers to be less satisfied. To get the best results, customers should be surveyed on a regular basis.
4. Higher Referral and Word-of-Mouth Marketing
Satisfied customers are more likely to tell their friends and family about their positive experience at your dealership. A good NPS will lead to higher referral and word-of-mouth marketing, increased service and repair sales, and reduced marketing costs. This type of marketing is highly effective and can result in more customers. Around 64% of marketers agree that word-of-mouth is the most effective type of marketing strategy.
5. Identifies Areas of Improvement
While a low NPS score is not great for your dealership, it provides an opportunity for dealerships to ask their customers where they could improve. This feedback can be used to make changes that will improve the customer experience and lead to a higher NPS.
6. Great Tool to Measure Against Competitors
NPS can be used to measure a dealership against its competitors. This is important because it allows dealerships to see how their service stacks up, and what areas they need to improve in order to remain competitive.
7. Greater Employee Engagement and Job Satisfaction
Employees who feel that their work is valuable and that they’re making a difference are more likely to be engaged and satisfied with their jobs. Research finds that engaged and passionate employees were more likely to provide great customer service. And a high NPS reflects this great customer service.
8. Improved Public Image and Reputation
A high NPS can help improve your dealership’s public image and reputation. If customers are telling their friends and family about their great service experience at your dealership, that will reflect well on your score. After all, people are more likely to do business and pay 22% more for products or services from a company that has a good reputation.
Increase Your NPS with TruVideo
TruVideo is the perfect tool for dealerships looking to improve their Net Promoter Score. Our video platform improves communication between clients and car dealerships by personalizing the service experience through video texting, increasing customer satisfaction.
The NPS survey is sent out to customers once the RO is closed so they can complete it. Ideally, all businesses should have NPS goals set for each department to reach. Dealerships could send automated text messages after a car sale or service completion, asking for feedback on their experience.
Management could then follow up with dissatisfied customers before they leave a bad review, which could be an effective way to improve ratings.Working with a provider that shares the average NPS on a monthly basis would allow dealerships to stay up-to-date on their score.
Through the use of video, dealerships can provide more information to their customers, making it easier for them to see what is happening with their vehicle’s service. TruVideo is easy to use and provides value to all parties involved. Contact us today to learn more about how TruVideo can help your dealership.