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Net Promoter Score (NPS) is crucial while measuring customer loyalty and satisfaction, but sometimes it can be difficult to understand. In this blog, we’ll discuss what NPS is, outline different ways to calculate it, explore how it can be used, and provide practical guidance on how it can serve as an invaluable tool for better understanding your customers.
Net Promoter Score is an important metric to evaluate the growth of your business. Therefore, if you want a net promoter score calculation and track NPS for your business, you must run an NPS survey to gather sound feedback from customers in the form of website pop-ups.
You can collect the feedback while the customer is on your website or gather it later on after the customer’s experience with your brand. You can collect feedback through website or email surveys :
You can collect the NPS feedback while the customer is on your website. For example, you can ask him for feedback after he completes a purchase or simply asks about his experience before he leaves or exits the site. That means you can trigger the feedback on the conversion pages. It will let you know their responses, and you can improvise them further.
You can ask them the standard question for NPS: How likely would you recommend us to your friend or colleague on a scale of 0 to 10. You can carry on asking further questions based on their responses.
For example – If they fall into the category of detractors, then ask them about their negative experience and what shall you do to improve it. Secondly, if they fall into the category of promoters, you can ask them what they like most about you.
Email surveys are a bit of a lengthy process of collecting NPS feedback from the customers as they have to open up the mail and navigate to a different page and then fill up the survey. But at least, they get time to think and reconsider the experience they had in context to your brand. That’s how they are more likely to recommend the product to their acquaintances.
Although there is a standard question in which you ask your customers to collect feedback, you still can optimize it as per your requirements. Let us see some of the questions you can ask :
1. How likely would you recommend us to a friend or a colleague on a scale of 0-10?
It is a standard question you ask your customers to get the numeric response, but you can make changes as per your needs.
2. How likely would you recommend us to your friends or colleagues based on your experience with us (on a scale of 0 to 10)?
You can trigger this question based on the action performed by the customer, such as when he places a product or when the customer fulfills the order.
3. How likely are you would recommend our product to friends or acquaintances, now that you have received our product?
It could be the next question in the row after the customers receive your product. You can ask them to rate your services, the product range, website experience, or the delivery process.
4. How likely would you recommend us to someone like you?
You can often ask the customer this question instead of the standard question when the product does not have a massive appeal. It would trigger the customer when he would put himself in others’ shoes.
Apart from the above quantitative questions, you can ask the qualitative questions from the customers:
You can ask the customers many qualitative questions after the quantitative ones that would help you implement the changes in your strategies. If a customer gives you a score below 8, you can ask them how you can improve your services. Below are a few examples :
a) Why would you not recommend us?
In a follow-up of your response, you can ask them to justify their score by asking the above question if they give a minimum score.
b) What did we do well?
Ask them a multiple-choice question, that helps you clarify their score. In turn, you can keep on focusing on that specific area.
c) What can we do to impress you?
Ask such open-ended questions to ask users straightforwardly what you must improve to make them happy.
Once you ask the NPS feedback from the customers, learn how you can read the NPS results in the next section.
You need to look at NPS results to give a boost to your business growth.
Below are the ways :
First, create different segments of customers based on their age group, preferences, gender, loyal customers, and so on. When you get the customers’ NPS scores, you just have to analyze the results as per the created segments and this is how you can adopt a different approach to different types of customers.
It is a fact that a single NPS survey will never get satisfactory results. You have to keep a record of the ups and downs you are receiving in the responses. If you get good responses in one survey, you can keep it as a benchmark and look at other survey results. It will give a good overview of your business and how far you are improving the services or diminishing it.
If you are going just with the survey’s numeric scores, it won’t help you much with improving your services. You have to focus on the qualitative questions’ responses as to why customers give you a specific score and the reason behind it.
The net promoter system is a complete open-source that helps you look into the blocks you are getting in the results and how you can use them to get sustainable results :
If you are only focusing on getting maximum revenues and profits based on your NPS results, you are going nowhere. Focus on how to support customers and give them a remarkable experience in every field.
For example, if you provide support to the customers via calls or emails, the call centers focus only on the number of calls the agents have to complete per hour or per day. Instead of focusing on this approach, use the NPS feedback to ask the customer about their CUSTOMER SUPPORT experience and give them ratings. Further, ask them how you can improve your customer support services.
There are various approaches out there that let you know customer engagement and loyalty. But net promoter score calculation surpasses them all. You can see where you stand out in the eyes of customers and give your higher officials a record of data-driven changes. Accordingly, you can make out the changes and revamp your strategies.
Net promoter score calculation results help you address the problems, directing your employees to make the necessary changes in the policies and products.
Below are the three steps for how you should do the changes based on NPS results
The range of NPS surveys varies from –100 to + 100. It differs in different industries differently as to how they take the scores as good or bad. For some industries, 60 plus is a good score, while it may not be that good for others.
The scores depend on how well you are serving your customers and how much customers are satisfied with your services. For example, suppose company A earns a score of 40 and is a bestseller amongst its competitors than the score of 60, which another company receives. That means that the customers are more loyal to company A and are buying more from that company.
The absolute NPS scores do not matter so much as the relative NPS score does. Therefore take a look at your NPS scores and see where it stands within your industry. You have to find the industry average for it and compare the Net Promoter Score benchmarks. But the benchmarks vary according to different countries. These would be different in the U.S. and India.
As stated above, the average promoter score varies from industry to industry and country to country. Therefore, you need to evaluate scores if they are making any sense in your business or not.
These are the following factors that can affect the benchmarks
Companies are coming up with new and innovative ways to serve customers. Technology and expertise play a significant role in it. When an industry leader or a hierarchy comes up with the changes, the competitors either follow it or never recover.
External factors such as the dip in the stock market and other financial services can affect the industry’s net promoter scores. Apart from the financial factors, the economic and political events also can affect the NPS scores.
Many industries are fighting against each other to balance the demand and supply factors. These industries then focus more on establishing a good relationship with the customers, directly or indirectly affecting the NPS scores.
Ask yourself what impact do the NPS scores make on your business. Does a low score nudge you to take action, or does a good score deviate from your path?
Take a look at the factors to stand you up for getting a higher NPS score
The standard question for the net promoter score is not merely limited to the numeric score you get, but you get to know your customer at a deeper level. So always ask to follow up questions such as :
Know what your customers need by having conversations with them. You can know about it in the follow-up questions and make definite changes in the policies or products if the customer is dissatisfied with that.
Take the users’ concerns seriously and assign your employees to put up with great efforts to satisfy the customer. If they have legitimate concerns make sure you satisfy the customers to the tee and make out the solutions for it.
If the customers are having issues with specific policies. Then it’s your duty to put it forward to the concerned departments so that they take good care of it and try to rectify it.
You can calculate the NPS with the help of three simple methods :
Let’s take it one by one :
Put your NPS data into the excel or google sheets in the form of numbers ranging from 0 to 10 in the rows and categorize them into detractors, passive, and promoters categories. Now you can do net promoter score calculation in excel :
First of all, add the number of responses. Now calculate the responses via an online net promoter score calculation. You can do it with the help of any software’s NPS Calculator.
The best part of a survey tool is that it has an in-built function that automatically calculates the NPS. There are many benefits of this auto-calculator such as you don’t have to export the data, and you can track the daily NPS fluctuations.
Net promoter score is a powerful tool and metric that indicates how much customers like you and adore you. If you ask the new users, you can know more about them and provide them with what they need. Therefore, view your NPS to see where you currently stand and compare it against your industry’s benchmarks. Remember, NPS is not just a number; you can get valuable insights from it.
First of all, you need to break down your customers into detractors, passives, and net promoter score calculation or your NPS score. You can also make a bar chart to see how many of the respondents are giving each score. Then, check out the following facts :
Create as many questions you want to create that enable you to see the required patterns and answers.
Each score or number has different annotations and significance. So, you cannot assume why a customer gave you 4 or 5. Therefore you can ask them directly about the scores they gave you. You can analyze why grade 4 is different from grade 5.
Know your customers better by breaking them down into different segmentation. For instance, you can place customers of a specific age under demographic segments, and you can put customers of a particular region in geographic segments. The segment will help you serve the customers better with the right campaigns.
It is inevitable that customers who give you a higher score are more likely to stay longer with you and be loyal to you than the other ones. These loyal customers will be more likely to give recommendations to their friends, colleagues, or acquaintances. But if you are not able to figure out the scores effectively and cannot decide which customer will be loyal to you or not. You can ask a qualitative question to get more clarification.
If you are good at calculating the economic returns from your NPS feedback scores, you can quickly identify the economic returns you will have from the NPS results. Not everyone has the knack of finding this formula for getting instant results from net promoter score calculation, but you still can try and see how you can maximize ROI through the higher NPS scores.
Like the above questions, you can come up with other questions to maximize your revenues and profits.
NPS and business growth are directly correlated to each other. It can help you boost customer engagement, which will help you increase your conversion rates and revenues. Let us see how can you multiply your business growth :
By tracking the NPS results, you can check out how different segments give feedback. You can check out the following facts :
Now identify what needs to be changed or improved.
Revenues and profits are essential factors in asking for customer feedback through NPS surveys. But is it the only factor that is important? The answer is NO; you need to create a customer-centric approach to deliver customers what they need. Both of them can take your business run for the long term.
Don’t rush in or feel disappointed with NPS feedback. Even if you have detractors, you can still convert unhappy customers into happier ones with the renewal of your strategies.
You must be curious to know how can you serve the customers well with NPS results and what strategies you can attain to improve your NPS :
Try to dig deeper with the customer responses as to why they have given you a lower score. You can ask them questions through the mail, through direct interviews, and follow-up questions. Strive harder to focus on providing the best customer support. Let your managers reach out to your detractors in case you have any and solve their complaints earnestly. Show them that they are the center point of your attention.
In case you have many detractors, make sure you don’t bang your head into earning more profits by telling your teams to overwhelm customers through various calls as to why they do not like your services. But be customer-centric and try to push your teams to serve customers by providing them more incentives.
These meetings and discussions are generally known as huddles. You need to conduct them frequently to look into the complaints of customers and resolve them quickly. In case you have got escalations, discuss with your team to come up with the desirable solutions.
The NPS results indirectly indicate: what your employees and team are doing to support the customers and how they give them a priority. If you have got promoters, then well n good, but you can still make it up to turn the customers into loyal ones. If you have got detractors, then again, it is your responsibility to take a more in-depth look at what your customers desire and what loopholes you have in your strategies.
Your company might have different departments, but one of the departments is gaining more promoters while the other has more detractors. In such scenarios, see whether the services you have provided are up to the mark or what areas lack improvement in them. Analyze the root causes and come up with key solutions for them.
It is not possible to change our entire site or the whole product after a lot of complaints. Still, you can inevitably focus on improving the policies, product delivery, and messages. You can make the necessary changes and then see the post changes score. You can compare the scores with the previous scores. If you see a significant improvement, it would be good; if not, you can again review your strategies and develop the desired improvements.
Net promoter score calculation has multiple advantages and can help you usher in many areas of your business, such as optimizing revenues, satisfying customers, pushing your employees to do better, and, last but not least, renewing your brand value. Therefore, adopt this tool to be a foreteller of your business fortunes.
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FAQ
Both qualitative and quantitative questions can be asked. An instance for the former is “How likely would you recommend us” and for the latter “What did we do well? How to read the NPS results?
Both qualitative and quantitative questions can be asked. An instance for the former is “How likely would you recommend us” and for the latter “What did we do well? How to read the NPS results?
Following are the ways to read the NPS results
1. Create different customer segments and introspect those
2. Keep track of performance over time
3. Focus on qualitative customer feedback
1. Ask qualitative follow-up questions
2. Work on your relationships with unhappy customers
3. Train employees to be customer-centric
4. Forward customer concerns to related departments for rectification
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