Are your tenants happy? Will they renew their leases? Will they tell friends about how amazing your properties are? Many businesses use the NPS scoring system to answer these questions to drive revenue and keep tenants happy. Here is the best way to use NPS scores in real estate.
What is the NPS score?
The Net Promoter Score (NPS) is a marketing scoring system used to measure customer, or in real estate, tenant, satisfaction. With an easy-to-complete survey, tenants answer on a scale of 1-10 how satisfied they are with a product, tool, or experience. A score of 10 suggests that the tenant is perfectly happy, while a score of 1 suggests that the tenant is unsatisfied.
Once you collect the survey result, you can then calculate the NPS score. The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters.
Detractors (score 0-6) are unsatisfied tenants who give poor feedback about a product or service.
Passives (score 7-8) are content but are not particularly loyal to your brand.
Lastly, promoters (score 9-10) promise high dedication regardless of any potential service deficiencies.
By subtracting the percentage of detractors (score 0-6) from the percentage of promoters (score 9 or 10), the overall NPS score provides the bigger picture of customer loyalty. Furthermore, by tracking the NPS score for a property over time, you can track improvements. Then, you may implement the changes that caused those NPS score improvements at other properties.
Did you know that the NPS score also plays a significant role in real estate?
Good relationships with tenants are vital. A satisfied tenant leads to retention and renewals. By having the NPS score notify you when a tenant is unsatisfied with your service, you have an opportunity to fix the problem. Without the NPS score, you may see renewals, occupancy, and NOI decline without understanding the cause. NPS scores provide you with the appropriate tools to optimize property performance.
How to track your NPS score in real estate
Collecting feedback from a tenant can happen at many touch points, such as at move in, after the completion of a work order, at renewal, etc.
You must automate your tenant surveys. You could have your leasing team create a Typeform, Survey Monkey, or Google Forms survey. Or if you really want to automate the process, you could use CREx Software. We integrate directly with solutions such as Reputation.com. Then, we store NPS score data alongside your NOI, occupancy, and rental rate data. With CREx, you can see trends in performance over time and make the best decisions for your properties.
Start tracking NPS scores today!
Are you interested in tracking and managing the NPS score at your properties? Reach out to us today! Our team of experts will help you optimize property performance with NPS scores.