It’s more important than ever to understand and figure out customer loyalty in a world where social media and online reviews let anyone say what they think. For people who work in customer experience (CX), the Net Promoter Score (NPS) is useful. With one simple question, the NPS measure tries to get to the heart of how you interact with your customers.
What Is A Net Promoter Score?
First, let’s go over the basics. This number tells you how happy your customers are with your brand, goods, or services and how likely they are to tell their friends about your business. It was made by Fred Reichheld in 2003, and a lot of people have used it since then.
People are asked, “On a scale from 0 to 10, how likely are you to recommend our business to a friend or coworker?” to find NPS. Most of the time, companies ask customers an open-ended question to seek out why they chose the score they did.
People will be placed in three groups based on their score: supporters, passives, and critics. Let’s break those down:
- Promoters (9โ10): Loyal customers who will likely tell their friends about your business and help the new ones come in.
- Passives (7-8): These clients are pleased with your product but not loyal. They might choose a different company if a better deal comes along.
- Detractors (0-6): These dissatisfied consumers may spread bad word of mouth or post unfavorable evaluations about your company, jeopardizing its reputation and progress.
Why Use Net Promoter Score?ย
This is what Staelin said about the Net Promoter Score: it shows how pleased a person is. This is very true for businesses that give software as a service (SaaS) and keep an eye on how their clients feel about them. These CX programs are made to make this measure better because the market for business technology companies is very competitive right now. Here are some of the most important reasons why you should use Net Promoter Score:
- Find out if your customers are pleased with your goods or services.
- Using measures for customer service that don’t take a lot of time or money
- Taking action based on data-driven comments about the customer experience
- Telling customers and possible buyers about your good reviews in public
How To Calculate Net Promoter Score
How do you figure out NPS? How likely are you to tell other people about the service or product? That’s the bottom line. People who fill out the net promoter score poll can choose a number between 0 and 10. A score of 0 means “not likely at all,” and a score of 10 means “very likely.”
When your buyers give you an NPS score, it tells you what kind of person they are based on that number.
- Promoters: Answer with a 9 or 10.ย
- Passives: Answer with a 7 or 8.ย
- Detractors: Answer with a 6 or lower
Divide the number of people who don’t like your business by the number of people who do like it to get your total NPS score:
NPS = Promoters Percentage – Detractors Percentage
This means that 20% of your people are upset, and 80% are happy. This gives you an NPS number of 60. The best score is 100, and the worst score is -100.
Whatโs A Good Net Promoter Score?
Staelin says it’s good to have an NPS score above 20%. “However, I think 30% is world-class for enterprise technology because companies that buy technology for business services are known for being picky.” More than iPhone’s “famously positive CX,” which Staelin says had an NPS of 63, Trifacta is about 84%.
Another thing Staelin said was that if you want to be a great business technology solution, you should make CX programs that improve your NPS. It’s more important than ever to keep users and find new ways for them to use your product well in a very competitive market. This is why most tech companies require their NPS to be 30. We want to get a score above 50.
Read Also: Pay Per Click Google Cost: A Comprehensive Guide For Marketers
How Does NPS Work? 9 Steps For Deploymentย
- Pick out the right tool. You can use a simple poll tool or more complicated software that manages the customer experience and has NPS built in to do this.
- Figure out the way of delivery. Figure out how to send the survey by email or text while people are using your site, product, etc.
- Plan out your poll. It should be short and simple. Make sure everyone knows that the number goes from 0 to 10 and that a 10 means good feedback. That’s not all. You can make the poll look and feel more like your business so that more people will fill it out.
- Pick the time and frequency. Send the survey after someone buys something, opens a help ticket, or does something else important. Be aware of survey tiredness; give people enough time between NPS polls to keep them from getting upset.
- Send the poll. Follow the way(s) you picked to send the report. Make the offer more personal to get more people to answer and show customers that you care about what they have to say.
- Look at the answers. Get your information together and read it over. Find the net promoter score, but also look at the qualitative comments to understand why the number is what it is. You might learn something useful here that will help you improve your service or goods.
- Take the comments to heart. Use what you learned from the NPS poll to make things better. If you have enough information, you can also use user-generated material or recommendation programs to get people to talk about your business.
- Finish the loop. Follow up with people who told you what they thought based on what they said. Thank people who said bad things about you for them and let them know what was done to fix the problems they brought up. Think about passives and try to improve their experience. Thank the organizers and ask them to post online about how great the event was.
- Watch and try again. Keep an eye on NPS and see how it changes over time. Change the way you do things based on this knowledge to make your customers happy and raise your NPS score.
