Focus on Your NPS Passives Instead of Your Detractors

focus-on-your-nps-passives-instead-of-your-detractors

To improve your firm’s NPS (Net Promoter Score) you need to focus on detractors, at the same time, you should not ignore the passives. The NPS formula is simple: “the percentage of promoters” – “the percentage of detractors”. However, this equation includes only detractors and promoters and does not take into account passives that are in the middle. 

A good NPS program pays attention to passives also as they are equally important and critical to your firm’s success just like promoters and detractors. Therefore, you should make the changes and provide your passives the care and service they need. 

Net Promoter Score® Calculation

You can use Net Promoter Score software to prepare an NPS survey to get feedback from your customers. This helps you to gauge a consumer’s sentiment and opinion about your company on the whole. Therefore this metric can be used organization-wide. 

NPS software segments your customers into three groups: promoters, detractors, and passives based on the ratings they give your firm in the survey. Generally, enterprises focus on detractors while ignoring passives as they are not thought to move the needle. In this article, we give you good reasons to concentrate on upgrading your passives to promoters, instead of trying to convert your detractors into passives. 

Passives Are Ready to Shift to Competitors 

More than detractors, indifferent customers will be more likely to go to your competitors. In an HBR study, 20% of passives indicated they were willing to leave compared to 28% of detractors that they were interested in staying. Further, passives will easily move to a competitor brand if they offer a slightly better product or price. 

Therefore, if your competitors offer better deals, passives will go to them which is different from the case of promoters and detractors who have strong feelings about your brand, which is positive or negative. You may think it’s not a big deal to lose a few indifferent customers. However, consider the following score if your company’s average Net Promoter Score is 26.

If you have 50% promoters, and 24% detractors, that leaves a considerable 26% as passives who are willing to churn at the slightest opportunity. US businesses lose about $137 billion a year because of avoidable customer switching. This means by concentrating on the 26% passives you can save a good amount of money and obtain a few promoters too. 

Passives Are Not Passionate About Your Product

Detractors have strong feelings about your company and do not hesitate to voice it. On the contrary, passives don’t care about your product or brand. However, you can easily influence your passives with a little effort and make your offer more value than your competitors’. 

A Hello World survey shows that consumers wish to engage with a company that offers the services like surprise gifts and offers, a more comfortable shopping process, resolving their issue, recommending items based on requirements, keeping them updated on the new products, welcoming their visits, and engaging them on social networks. You can focus on just one of the above methods to change your consumers’ perspective and convert them from a passive to a promoter who recommends your brand to their contacts. 

Passives Are Price Conscious 

Passives are sensitive to price and they think the cost is a big factor because they don’t see much difference between your offering and others. Therefore, you should get more information from churn-risk passives about whether they are getting value for money from your product. Do they think it is worth the price?

Research reveals that passive consumers are likely to churn inside 6 months as they are willing to consider alternatives. In fact, a good 20% to 30% of passives churn within 6 months which is a lot to lose for any company. To prevent this expensive churn, you should concentrate your energy on improving things for this important segment. In the process, you can gain valuable product and marketing insights that you can use to convert your detractors into promoters. 

piHappiness is a popular Net Promoter Score software that is utilized by numerous organizations including many top brands. Our software is efficient and affordable and can help your company implement an effective NPS program to gain insights on customer sentiment and opinions. Contact us today for more information on how to utilize our NPS software to enhance your business prospects.