What is NPS?
At its core, NPS is a simple yet effective measure of your company’s performance from the customer’s perspective. It answers the key question:
“How likely is it that you would recommend [Company Name] to a friend or colleague?”
Respondents rate their likelihood on a scale from 1 (very unlikely) to 10 (very likely). Based on these ratings, customers are categorised into three groups:
- Promoters (9-10): Loyal advocates who are likely to recommend your business.
- Passives (7-8): Satisfied but not enthusiastic customers.
- Detractors (1-6): Unhappy customers who may harm your brand through negative word-of-mouth.
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.
Why NPS Matters for Construction Sector Clients
NPS goes beyond just tracking loyalty; it provides actionable insights that can drive growth and improvement. Here’s why it’s essential:
- Pinpointing Areas for Improvement
Analysing feedback helps identify specific areas where your service or product is falling short. - Benchmarking Against Competitors
Stay competitive by tracking your NPS relative to industry benchmarks. - Motivating Teams
Sharing NPS results with your employees can motivate them to excel and improve training outcomes. - Increasing Customer Retention
Engage detractors to address their concerns and turn them into promoters.
How Construction Clients Use NPS Surveys
- Tracking Customer Performance: Monitor trends over time, especially during customer service improvement programs.
- Benchmarking Competitors: Use NPS to ensure you stay ahead in a competitive market.
- Identifying Low-Performing Segments: Target weak areas with tailored strategies.
Best Practices for Collecting NPS
Different survey methods suit different goals and audiences:
- Telephone Surveys
- Yield higher response rates.
- Allow for in-depth, honest feedback.
- Offer a personal touch for key customers.
- Email & SMS Surveys
- Ideal for quick, transactional insights.
- Provide lower response rates but faster results.
Expanding NPS Insights
To maximize the value of NPS, don’t just survey loyal customers. Include:
- Lapsed Customers: Understand why they left and identify opportunities to win them back.
- Non-Customers: Gain insights into why they aren’t choosing your company and identify areas to improve market share.
Make NPS Work for Your Business
Incorporating NPS into your strategy allows you to measure and enhance customer loyalty, uncover new opportunities, and drive sustainable growth. Whether you’re tracking top-level performance, improving customer service, or benchmarking against competitors, NPS offers invaluable insights for the construction sector.
At Leading Edge, we help construction businesses implement and interpret NPS to achieve actionable outcomes. If you’d like to learn more about how we can help, get in touch today.
Embed This On To You Website
To embed this on to your website, please use the following embed code. Attribution is required, along with a link to Leading Edge. No alterations to the infographic are allowed:
<br /> <p><strong>Infographic created by <a href=”https://lead-edge.co.uk”>Leading Edge</a>:</strong></p><br /> <p><a href=”https://lead-edge.co.uk/articles/why-net-promoter-score-nps-is-vital-for-the-construction-sector/”><img src=”https://lead-edge.co.uk/wp-content/uploads/infographics/Leading-Edge-infographic-NPS.jpg” alt=”Leading Edge Construction NPS Infographic” width=”945″ /></a></p></p>
