What is Net Promoter Score (NPS) and what is it good for? This is a common question for those who have never heard of the concept.
The Net Promoter Score is an index used to measure customers’ willingness to recommend a company’s products or services to others, which can be used as a proxy for gauging a customer’s overall satisfaction and loyalty to a brand.
In this article, we’ll cover the basics of Net Promoter Score, including how to calculate your NPS and ways to use the information to improve customer experience.
1. Ask the “Ultimate Question”
The Net Promoter Score survey is one of the easiest and fastest ways to check in on customer satisfaction. It’s a simple, one-question survey that asks customers to rate their likelihood of recommending your business on a scale of 0 to 10.
The question is: “On a scale of 0-10, how likely are you to recommend our company to a friend or colleague?”
Based on their answer, customers are then categorized into one of three groups:
• Promoters (score 9-10): Loyal customers who will keep buying and refer others, fueling growth.
• Passives (score 7-8): Satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
• Detractors (score 0-6): Unhappy customers who can damage your brand and impede growth through negative word of mouth.
To calculate your NPS, subtract the percentage of detractors from the percentage of promoters. This gives you a score between -100 and 100.
2. Give Customers an Easy Way to Answer
The easier it is for customers to leave feedback, the more likely they will do so. Make sure to provide multiple ways for customers to answer your NPS survey.
You should always include an open-ended question in your NPS survey. This will give customers a chance to provide more detailed feedback about their experience.
You can also include multiple-choice questions to get a better idea of what customers like and dislike about your business.
3. Follow Up
If a customer leaves a low score, it’s a good idea to follow up with them to find out why.
It could be that they had a bad experience with your company. Or, it could be that they just don’t understand your product or service very well.
Either way, following up with these customers can help you improve your NPS and your overall customer satisfaction.
You can also follow up with customers who leave high scores to find out what you’re doing right.
This can help you identify your strengths and build on them. It can also help you identify areas where you may need to improve.
Following up with customers is a great way to show them that you care about their feedback. And, it can help you improve your NPS.
but Don’t Overdo It
One of the key benefits of NPS is that it’s a simple metric. It doesn’t require a lot of explanation or context to understand what the score means.
However, if you start to overcomplicate your NPS surveys or how you interpret the score, it can lose its value. Make sure that you’re asking simple, straightforward questions in your surveys and that you’re not asking too many questions. Also, don’t overanalyze your NPS score or try to make it mean more than it does.
4. Look for Patterns in Feedback
If you’re seeing a lot of negative feedback or your NPS has gone down, it’s important to look for patterns and commonalities in the feedback.
This can help you identify specific problems and make changes to improve the customer experience. It can also help you identify opportunities for growth and new product or service offerings.
5. Use NPS to Identify Your Most Loyal Customers
Customer loyalty is a key factor in the success of any business. Loyal customers are more likely to recommend your business to others, make repeat purchases, and provide valuable feedback.
NPS can help you identify your most loyal customers. By segmenting your customers based on their NPS scores, you can quickly and easily identify which customers are the most loyal. This allows you to focus your efforts on retaining those customers and encouraging them to recommend your business to others.
6. Use NPS to Identify At-Risk Customers
Net Promoter Score helps you identify your most loyal customers, but it also helps you identify your most at-risk customers.
If you notice a customer has given you a low score, you can reach out to them to see what you can do to improve. This can help you prevent customer churn.
You can also look for trends in your NPS data to see what’s causing customers to give you low scores. If you notice a common theme, you can take steps to address the issue and prevent more customers from leaving.
7. Use NPS to Set and Track Goals
Your Net Promoter Score is a great way to get a quick look at customer satisfaction. But, that’s not all it can do. NPS can also be used to set and track goals for your team and your business.
For example, you can set a goal to increase your NPS by 10 points in the next quarter. Then, you can track your progress and see how close you are to reaching that goal. If you’re not on track, you can take steps to improve your score and get back on the right path.
Using NPS to set and track goals can help you stay focused on what’s important and make sure you’re always working to improve your customer satisfaction.
8. Share NPS Data Across Your Company
Your NPS score will give you a good idea of how your customers feel about your brand, but it’s important to look at individual responses to understand why people chose the score they did.
By analyzing feedback, you can begin to identify trends and patterns in the data. This will help you understand what you do well and what you need to improve.
9. Don’t Forget to Ask Why
The Net Promoter Score question is simple, “How likely are you to recommend our product to a friend or colleague?” The NPS survey follows this up with an open-ended question, “Why did you give that score?”.
You can learn a lot about your customers by asking them why they gave you the score they did. This will help you understand what’s most important to them and what you need to do to keep them coming back.
For example, if a customer gave you a 9 out of 10 and said, “I love your product, but it’s too expensive,” you might want to consider offering them a discount.
On the other hand, if a customer gave you a 5 out of 10 and said, “I never received my order,” you’d want to make sure you fix the problem and follow up with them to make sure they’re satisfied.
By asking your customers why they gave you the score they did, you can learn more about what’s working and what’s not and take steps to improve your NPS.
Conclusion
NPS is a very simple and effective metric that can help you improve your business. It’s based on a simple question – would you recommend our product to your friends? This way, you can learn how your customers feel about your brand and what they think you should improve.
