The Net Promoter Score – NPS is the leading metric for measuring customer satisfaction and loyalty for any business. In fact, It goes beyond measuring just customer satisfaction and further gauge their desire to recommend it to others. It’s relevant to every type of organization irrespective of size and industry. Many businesses rely upon the NPS and consider it a cornerstone of their feedback collection process not just because of its benefits but because it helps them improves customer experience over time.
The NPS calculations start with surveying the customers and collecting their feedback on a pre-defined numeric scale. The simplicity of the NPS system beholds its magic; so don’t get carried away by adding too many questions. It is usually a one-question survey but some businesses or teams like to extend it to 4-5 questions.
Calculating NPS is very straight forward. The score comes from a standard survey question,
“On a scale of 0-10, how likely would you recommend (Brand/company name) to your friends, family or professional associates?”
You can easily make it part of your customer nurture programs using your marketing automation platforms like Marketo, Hubspot, Pardot or others. Thereby automating the collection and reporting of this data in predecided intervals of Monthly, Quarterly or other desired time frames.
Your customers will give you a score as per their experience with your product or services.
The formula to calculate NPS is quite simple: subtract the percentage of Detractors from the percentage of Promoters. For example, say you have got 50% of your respondents as ‘Promoters’ and 10% were Detractors, your Net Promoter score will be 40.
Calculating NPS doesn’t end the process as it only tells how you are performing from your customer’s perspective but not why. It is necessary to ask your customers; what drove their score? The best practice is to provide them a list of pre-defined touchpoints along with an open option to explain themselves in a comment box.
You can learn from your ‘Detractors’ by asking ‘diagnostic questions’ or ‘targeted follow-up questions’ like, “What can we do to improve?” similarly you can ask your ‘Promoters’ “What are we doing really good at?”
Knowing about reasons for your customer’s satisfaction or dissatisfaction will expose the weak points that you need to improve to enhance customer loyalty for your brand.
Here is a list of reasons that should be strong enough for anyone to consider the idea of measuring NPS over other customer satisfaction measurement tactics.
From the collective feedback being received management can pinpoint the root causes and can execute appropriate improvement plans to avoid such negative feedback in the future.
It is worth investing time and effort in measuring NPS to find out your customer loyalty and satisfaction level. If you are planning to work on having a consistent and automated NPS program, we can help you with that; drop us an email at [email protected]