A management tool for calculating your customer loyalty and increasing revenue.
NPS is used to improve perceptions of your brand. Addressing the customer by name will strengthen your relationship and encourage unbiased feedback.
Your score is not be a one-off calculation, it’s a benchmark for development. Make a habit of collecting NPS at customer touchpoints or through email campaigns.
By asking for additional comments, you’ll gain actionable insights from the voice of the customer. These comments should refer to the customer’s last experience or their overall perception of your brand.
At the end of your survey, create a contact field for those customers who wish to be contacted regarding their response. This creates another opportunity for relationships management and insight.
NPS is an industry tested standard for measuring customer loyalty to your brand or organization and is done by asking a single question: “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or colleague?“.
This rating should be taken after a customer’s most recent interaction with to measure their overall brand sentiment against that touch-point. This allows you to identify strengths and weaknesses more accurately, as opposed to relying on recall.
Detractors are customers who’ve had poor experiences can damage your reputation through negative word of mouth. Immediate outreach is required to convert detractors to promoters.
Passive customers are generally satisfied with your product or service but aren’t motivated to promote your brand. This category of customer is also still at risk of defecting to a competitor brand.
Promoters are not only loyal to your organization, but also advocate it. They provide referrals through word of mouth, increasing your acquisitions at a lower cost to your organization.
NPS requires a quantitative approach to market research, meaning your results will be more statistically significant with the more responses you acquire.
To calculate your Net Promoter Score, you must first discern the percentage total for each customer group (Detractors, Passives and Promoters). Then subtract the percentage of Detractors from the percentage of Promoters. The number your left with is your NPS.
Your Net Promoter Score is measured between -100 and +100, where any score above +50 is considered excellent. It will give you insight into your customers’ current brand sentiment, and should be calculated regularly. Monitor your performance over time and benchmark against industry competitors for context.
Segment your reports into Detractors, Passives and Promoters to understand the motivation and grievances of each group, and to inform your strategy for converting all customers into advocates.