net promoter score

The gold standard of customer experience analytics is the net promoter score (NPS). To learn more about what net promoter score is, how it is calculated, and how tracking may benefit your company, read our in-depth guide produced by customer experience specialists.

What is the NPS?

“How likely are you to suggest our company/product/service to a friend or colleague?” asks the NPS. The answers range from 0 (very unlikely) to 10 (extremely likely) (highly likely). A follow-up question is frequently asked, allowing consumers to explain why they gave the score they did and offer suggestions for improvement.

The NPS Metric

Each customer is classified as a Promoter, Passive, or Detractor based on their response.

Detractors (in danger):

  • Your score ranges from 0 to 6
  • You're unhappy with your goods or service
  • You're thinking about switching to a competitor
  • Are more likely to tell others about their bad experience and harm your reputation

Noncommittal Passives:

  • You get a 7-8
  • Are dissatisfied with your product or service
  • Competitor offers may entice them
  • Are not taken into account while calculating the NPS

Promoters (advocate)

  • You get a 9-10
  • Are passionate about your product or service
  • They aren't swayed by competition offers
  • Can provide references and case studies
  • Are more inclined to share their knowledge and help others flourish through referrals

How is Your Net Promoter Score Calculated?

Subtract the percentage of critics from the percentage of promoters to get your overall NPS score.

NPS = promoter percent − detractor percent

For example, if you received 100 replies with 60 Promoters (60%) and 20 Detractors (20%), this formula would be:

60 – 20 = NPS score of 40

The Advantages of Using Net Promoter Score to Measure Customer Loyalty

A variety of customer service survey alternatives are available to assist organizations of all sizes and sorts. So, why should you use a net promoter score in the first place? NPS is a unique, clear measure that can aid your organization for a variety of reasons:

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  • NPS is easy to understand. It's surprising how a figure that's so simple to grasp and compute can reveal so much about consumer satisfaction (and a company's overall success). Customer loyalty, unlike sales or profit, is not always straightforward to evaluate, but NPS makes it possible and simple.
  • NPS gives you a broad picture of how a client feels about your company rather than focusing on a single interaction. As a result, NPS applies to all employees while also being digested as a single number. Everyone agrees.
  • NPS allows you to compare your brand to that of your competitors and/or industry. It can be difficult to obtain a sense of how you're doing compared to other businesses in your industry. When you look into NPS, you'll get a large picture view and go into the details.
  • NPS provides information into the likelihood of return consumers, allowing you to estimate your brand's perspective growth, income, and health.
  • NPS can also be a good indicator of employee satisfaction. When employees are happy and fulfilled, they perform better, which leads to happier consumers. If the number is low, you may need to make modifications to your clients as well as your own personnel.
  • Follow-up inquiries point you in the right way if you want to make a difference. You must include a blank area with your survey. Although not everyone will complete it, the responses you receive can be extremely useful in determining what needs to be changed to increase your NPS!
  • Implementing NPS is simple and inexpensive. We can assist you with getting everything set up right here!
  • The Net Promoter Score (NPS) is a good approach to track change over time. Is your grade improving? That's fantastic; keep up the good work. Is your grade dropping? It's time to re-evaluate your activities or do some research to figure out why.
  • NPS can aid in the reduction of customer attrition. Getting new consumers is far more difficult than keeping old ones. The negative feedback you obtain through NPS will give you insights into keeping your customers satisfied and preventing them from shopping for the same product or service elsewhere.

Finally, clients will find it simple to complete the survey. Everyone is busy these days, and time is a luxury, so finding a way to provide feedback fast. A quick survey will result in more participation, giving you more valuable data you need to grow your business.

Improve Your Business by Utilizing NPS

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You'll have your job cut out for you if your score is lower than predicted. Take specific input seriously and attempt to improve the issues that have been raised. Look into making relevant changes if they relate to certain features or updates of your items. According to studies, one out of every three clients will quit your business after just one bad encounter, and 91% will leave after two or three, thus time is of the utmost in keeping your customers!

Isn't it true that if you get a high Net promoter score, you're done? No, not at all. To keep that high score, there are always improvements that can — and should — be done. Keep an eye on particular feedback that explains what customers enjoy about your company and how they felt about it. If they mention something particular, you may use that aspect of your business to inspire others.

Let's imagine consumer praise about a tutorial on your website that they found really useful. Consider producing more if that's the only one of its sort you have. If there are any more, use this favorite as a model.

Another example could be a pleasant customer service interaction. Get your customer service reps on the same page by sharing this review and what made that interaction so amazing with the rest of the team. Never stop considering what you can do to make a difference.

How to Boost NPS?

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NPS is simple to obtain. As a result, absorbing the information becomes more actionable regularly. However, don't forget that the "why" inquiry is as crucial as the numerical score. When you have the score and why answer, you can truly understand your consumer and where your agents may be failing the brand, allowing you to improve your call center and customer experience initiatives.

Let's look at 7 ways to improve NPS now that you know why it's important.

1. Keep Your Customers in the Loop

The Net Promoter Score encourages businesses to always ‘close the loop' with consumers so that they can learn more about the context and reasons for their score. You can obtain even more input by using tactics like direct interviews, follow-up emails, and so on to drive your efforts in a customer-centric direction.

Begin with tiny steps, such as taking action anytime a detractor (0-6) appears. Have a manager or employee contact the consumer, listen to their grievances, and work to correct the situation (or, if that's not possible, explain why it isn't). Taking the time to show you care is a terrific way to start mending your relationship.

2. Organize the Company Around the NPS

Make sure that every leader in your firm understands that you aim to win over as many promoters as possible and share this vision with the rest of the organization. Explain what NPS is, how it's calculated, and how it might affect your company's annual evaluations. Consider motivating your teams based on NPS ratings and feedback rather than merely on revenue or the bottom line.

3. Have Regular Meetings to Discuss NPS

The inventor of Net Promoter Score, Fred Reichheld, refers to these meetings as "huddles." These short, engaging sessions help teams reaffirm their commitment to providing excellent customer service and provide a platform for them to discuss service escalations and explore solutions.

4. Train Personnel Based on NPS Feedback

NPS surveys' open-ended responses might reveal areas where employees and departments can improve. When applicable, use the feedback as a guide to train personnel to improve the customer experience.

5. Perform a Root-cause Analysis

When comparing input from promoters and detractors as part of your NPS study, you may see patterns. For example, one department team may have more than its fair share of detractors, while another obtains fantastic rankings. In this situation, the next step is to undertake a detailed root-cause analysis to establish whether the low ratings are due to the department, the product line they cover, or something else. After that, you're ready for the final step.

6. Experiment with Structural Adjustments to See What Works

You definitely don't want to modify your entire site or product because of a few complaints. Still, if detractor data indicates a structural issue, you should act and make adjustments to products, policies, and messages when appropriate. You can measure the success of your modifications by tracking the Net Promoter Score and comparing the pre-and post-change scores and feedback. If you notice a difference, that's fantastic—you've gained more promoters! What if it isn't? Then, armed with new data, go back to the drawing board and start over.

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Customer satisfaction survey questions don't have to be extensive and complicated; a net promoter score only requires your consumers to answer one question and gives a wealth of information. Customer net promoter score is linked to a company's performance, therefore if you're going to measure something, the net promoter score of your firm is the one you want.