NPS® (Net Promoter Score) is a value or metric used to measure customers' happiness and loyalty to a brand, service, or product. It is a surveying method, where the first question is usually: How likely are you to recommend our brand/company/ product to a friend or colleague?
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Depending on the score, responses are divided into three groups:
- Promoters: Scores of 9 and 10 are the happiest customers who are likely to promote your product to others.
- Passive: Scores of 7 or 8 are compliant customers who are didn't have strong opinions one way or the other of your product.
- Detractors: Customers giving a score between 0 and 6 are dissatisfied with your brand. Unhappy customers, who are not likely to promote your product to others.
Benefits of NPS surveys:
💌 Simple, user-friendly & quick
NPS is relevant to everyone and you don't need to spend a lot of time and effort to conduct a survey on the site or send it by email. The steps are easily done using Survicate in less than 5 minutes. As usual, NPS is a short survey that is quick to create, collecting responses. In an analysis, you don't need to carry out three-story calculations to calculate the NPS. Interpreting the result is easy as well - express it as a percentage; the picture will immediately become apparent.
💎 Helps you work on customer retention
Retaining current customers is more profitable than attracting new ones. Everything is simple - the more loyal your customers are, the more likely they will stay with you and not go looking for someone better. And if they are not happy with your brand, you can easily get in touch, appreciate their feedback and turn them to promoters.
🚀 Evaluate your business and give direction for change and improvement
Running an NPS survey frequently, helps you to stimulate business growth, as the company becomes more interested in improving this indicator. Moreover, frequent feedback from your customers will certainly show which areas are your strengths, and which are open for improvement. You can use this feedback to make better business decisions and scale your product.
How do you calculate the NPS?
To calculate the Net Promoter Score, simply subtract the percentage of Promoters from the percentage of Detractors.
For instance, if 70% of respondents gave a score of 9 or 10, and 10% gave a score between 1 to 6, the result would be (70% - 10%) x 100 = 60. To get 60 NPS is a perfect indicator since most customers are Promoters.
❗️ It's a common misperception that passives don't have any effect on the NPS results, however since the overall score is calculated using the percentage, passives do influence the total number of results, hence the percentage of the calculation.
Survicate automatically calculates your NPS in the Analyze Results section of your survey. You can find the percentage and number of responses for all three group and your overall score:
What is a good NPS?
A good and bad NPS - is a very relative concept and it could depend on the area of the business you provide. However, it is generally accepted that:
- -100 - 0 score means that your product, brand, or business needs improvement!
- 0-30 score seems to be good, but you can do better!
- 30-70 score purport that it is great and you have more happy customers than unhappy ones!
- 70-100 it's a wonderful score. Your customers love you!
What are the next steps to an NPS result?
Since NPS segments your customers to three different areas, we advise you to act on the feedback also using these segments.
Positive feedback will help you to promote your company or brand. Promoter group is your competitive advantage, which should be untwisted and used to the maximum.
- Compare them with detractors and learn how they differ. Based on this, you can conclude what the detractors lack and what you can improve.
- Be sure to thank them for the feedback and write something nice - let them know that you value them. You can use Zapier, which allows you to set up automated emails.
- You can also ask them to leave feedback about your company or brand on Capterra or G2 Crowd. Using the page redirects to these sites, and collect admiring opinion on you.
- You can contact the Promoters directly in an email, messenger, on a call, and ask them to share their opinion, ask for a testimonial, or even a case study.
- Use this group for marketing purposes. In this case study, you can find an excellent example of how BPS World users their NPS to achieve their Marketing goals.
It is a significant group that can develop into a Promoter or Detractor in the future. Therefore, you should pay attention to them.
- Find out what you can improve so that next time, the score will be higher.
- Ask what the Passive group is missing and what they would like to achieve.
- Try to clarify what products, services they use most often, maybe their average rating is caused by low quality or some shortcomings. The best way to do it using text answer question type to allow them to share with you all the information they like or dislike and things they want to improve.
It is the most dangerous and vital group that needs to be given attention and quick response!
- Try to answer personally to negative feedback, show your interest, be helpful.
- You can also send these people to your customer support team to give them better help and attention. Let them know you are ready to improve the quality to regain their trust and respect.
- To be sure that you have not missed this feedback, we suggest you configure email notifications for your survey. You can also use Zapier notifications; for example, you might want to get notified only when someone submits an NPS response or when a specific question is answered in your survey.
- Additionally, Slack integration allows you to collect responses and notifications on selected channels. This way you can ensure all your teams are in the loop with your customer reviews.
💡 Tips for the most efficient NPS survey:
- Send your survey to the right clients and at the right time.
Segment your customers better if you decide to conduct a full survey, carefully approach the compilation of the sample. First of all, customers who are of the highest value to you should participate in your survey. For example, if you are planning to run an NPS survey on your website or web application, you can segment customers based on their previous number of visits. Thus, you can automatically send a survey to your customers who have visited your site several times and only survey your frequent visitors.
- Run NPS surveys periodically.
It is difficult to say how often you need to conduct a survey: the optimal time interval for each business is different. In Survicate for example, we make sure to conduct an NPS survey every quarter. This helps us to evaluate our business decisions and successfully plan our pipeline.
- Identify NPS respondents to keep a record of how individual customers relate to your brand. There are various ways you can do this in your surveys. If you are running an email NPS for instance, you can automatically capture respondents' email addresses using software-aware links.
- Ask additional questions. It doesn't make sense only to measure the NPS, unless there is further feedback. For instance, if you have a Detractor, ask why they are unhappy and what you could do better to let them buy your product and receive positive feedback. It will give you the right direction for change and improvement with your product, company, or business. Don't be limited to an NPS question, give space for your respondents to voice their ideas and opinions. All the more, it is convenient to do it in one survey. Choose significant directions and ask each one the main and a series of clarifying questions. We recommend you to use survey logic to add follow-up questions to your customers.
- Link your NPS results with your everyday tools to make the most of CRM. Survicate offers a wast majority of integrations, such as HubSpot, Salesforce, Intercom, etc. Thanks to this, you can keep an inventory of how individual customers relate to your brand.
The business's main mistake is not to measure loyalty and customer satisfaction in general - even if it seems that there are few customers. But even a more significant mistake - it is hung up on the numbers and override to crucial factors: the quality of the product/service, customer's desires and suggestions. All this additional information needs to be collected and is essential - not only the NPS.
❗Remember, a bad NPS is not a doom for your business. You always have the opportunity to correct mistakes, establish proper contact with Detractors and turn them into Promoters. Also, don't forget to pay attention and care to the Passive group so that later they will turn out promoters, but not detractors.
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Net Promoter® and NPS® are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.