How to Use Incentives to Increase Your Net Promoter Score

BY Lucy Fang
Mar 20, 2020
How to Use Incentives to Increase Your Net Promoter Score

A common metric for measuring customer loyalty and predicting business performance is the net promoter score. Many businesses are intimately familiar with this metric and work hard to get a good score. One way to improve your NPS is through the use of incentives.

How to Check Your Net Promoter Score

Let’s start with how to measure your NPS. The NPS is very simple and is based on having customers answer one question “How likely is it that you would recommend Business/Product?service to one of your friends or colleagues?” Customers are then asked to score the question between 1 and 10. 

After acquiring the data from your customers, you can group them into 3 different categories:

  • Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
  • Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
  • Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
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To calculate your net promoter score, subtract the percentage of Detractors from the percentage of Promoters.

To calculate your net promoter score, subtract the percentage of Detractors from the percentage of Promoters. For example, if you had 100 respondents and 25 were passive, 60 were promoters and 15 were detractors, your score would be 45.

60 – 15 = 45

How Incentives Can Help Your Net Promoter Score

Incentives can be helpful in both acquiring and raising your net promoter score. You can use incentives such as gift cards, prepaid visas, or digital rewards to encourage customers to give you reviews for your net promoter score metrics.

To improve your Net Promoter Score, you can create a loyalty program or revamp your existing customer loyalty program.

What do you need to set up a loyalty incentive program?

There are a few steps you’ll need to take as you set up your incentive program. Plan out what kind of incentive program and what elements you want to implement (online marketplace, points-based, code-based, sweepstakes, instant win games, etc.). Talking to an incentive program expert can be an important part of this process.

You will need to decide what kind of rewards will you be offering. Will you work with digital reward vendors? Offer travel and experiential rewards? Gift cards? Merchandise? Will you provide the rewards, or work with an incentive provider?

You will also need to make sure you have the right kind of software to run your program. The right incentive management software and reward management system are important to the success of an incentive program.

When comparing companies offering loyalty incentive program solutions, All Digital Rewards stands out with amazing support, fantastic incentive management software, and engaging solutions for every organizations’ loyalty program needs. We’re your one-stop-shop for your incentive program needs. We understand the importance of providing a custom-tailored incentive solution that will perfectly fit your business’s needs. Our proprietary SaaS with STACK™ Loyalty Reward Program Management Software provides clients with a turnkey reward management software solution and our incentive program experts can help you plan, implement, and execute an outstanding incentive program.

For more information on how All Digital Reward can help you with your loyalty incentive program call 866-415-7703 now or click on the button below to schedule a demo.