Net Promoter Score for Restaurants, Bars, and Hotels
The restaurant business solely depends on the customers. If the customers get satisfied, then your business is bound to grow. So, keeping your customers satisfied is what most restaurants are after.
How do attain this? Restaurants can work on their NPS score. Improving the net promoter score is a sure-shot way to convert detractors to promoters.
What is NPS in restaurants?
NPS is a metric used in customer experience programs. By using this metric, you know if your customers are willing to refer your restaurant to their friends/family.
It consists of one question:
“How likely is it that you would recommend our restaurant to a friend or family member?”
The customer can choose their response from 0 to 10. With 0 beings (not likely) and 1 being (extremely likely). The customers selecting their responses will fall into three categories:
How do evaluate NPS scores for restaurants?
It is simple to calculate your NPS score. Subtract the percentage of detractors from the percentage of promoters.
Let us understand this better with an example:
If 20% of respondents are detractors, 20% are passive, and 60% are promoters. Your NPS score would be 60-20 = 40.
You need to know detractors, passives, and promoters for a better implementation of NPS.
- Detractors: They have a score (0-6) and are unhappy customers who can damage your brand by sharing negative feedback about your restaurants.
- Passives: They have a score (of 7-8) and are somewhat satisfied with your restaurant service. But these customers are vulnerable to competitors.
- Promoters: They have a score (of 9-10) and are loyal customers who will keep buying the service. They will continue to refer others for the service.
Also read: 4 Ways To Promote Your Restaurant Online
Benefits of Net Promoter Score for restaurants
The restaurant business requires staying in touch with customers. Measuring feedback is what allows the restaurant to stay ahead of the competition. Implement NPS metrics and get to know how satisfied your customers are. Let’s look at the benefits:
1. Instant report of customer satisfaction.
NPS allows you to track instant customer satisfaction. If you want to capture real-time customer satisfaction after any event, then using the NPS survey helps gather customer satisfaction instantly after the specific interaction.
There are a lot of touchpoints present in the customer experience journey where you have to capture the feedback. And if you are capable of capturing a recent experience that is authentic. You can ask a simple question – “How would you rate our company on recent experience?” Here are some touchpoints where transactional surveys can get triggered:
- Post-order survey.
- Post ticket.
- Post-delivery survey.
Using NPS software is the way to take customer feedback surveys. It offers various features such as tools integration with third-party tools like Intercom, Zapier, and custom APIs.
2. Improves service quality.
To keep your customers satisfied and ensure complete satisfaction, you have to make your service customer-oriented. It is possible by implementing NPS surveys, helping you to get customer feedback effectively. The NPS survey consists ideally of a two-part questionnaire:
- The net promoter score question: How likely are you to recommend our restaurant to a friend or colleague?”
- Follow-up question: This part of the NPS survey highlights the reasoning behind the customers’ scores. When you ask the reason for the score, you will know about the product and services in-depth from a customer perspective.
You can use the reasoning of the score as per the audience:
3. Allows closing the feedback loop
The main idea of implementing the Net Promoter Score survey is to close the feedback loop. The detractors not only give a bad score, but they spread bad word of mouth for your brand. In the long term, it harms the brand image of your restaurant.
So, it is necessary to follow up with your detractors and solve their problems. It will improve customer satisfaction. It might turn them into promoters, as detractors would love to do business with you when you solved the issue.
To close the feedback loop with your detractors, you need to know the customer feedback loop and the types of customer issues present in the customer feedback loop:
- Recurring customer issue
- Personal customer issue
By following up with the detractors, you can track down the pain points they found using your services. Based on the interaction with your customers, you can solve the problems of your detractors and turn them into promoters. It further helps you to close the feedback loop on the positive side.
4. Reduces the churn rate by following up with the detractors
Achieving growth is difficult with churn. To overcome this, evaluate the churn rate of your business. A churn rate means the number of customers who leave your business over a specific period. By knowing churn, you can quickly identify the detractors and follow up with them to solve their problems and improve their experience.
Here’s how you can calculate the customer churn rate:
Churn rate % = Number of Churn Customers ÷ Total Number of Customers x 100.
You can find the total number of customers = Number of existing customers + Number of acquired new customers – Number of churned customers.