NPS is not that simple
NPS is a strong tool that has been considered the gold standard customer experience metric for many years now. However, the problem with most NPS tools is that they don't provide you with the reasons that make your end-user a detractor, promoter or passive user.
Your team only gets a score that is very complicated to interpret, getting the context behind it can often be very challenging. What can be seen as very useful at the executive level doesn't quite translate to actionable results on the field. By focusing only on the NPS score, there is very little segmentation, you don't get the WHY and you have no way to improve the overall experience.
NPS for the uninitiated
NPS® or Net Promoter Score is a customer satisfaction tool that measures whether customers are willing to recommend your organization to others. NPS indicates customer loyalty and is very useful to benchmark with other players from your industry, as everyone is measuring their NPS.
The NPS is calculated by asking the customers the following question, "How likely is it that you would recommend our company to a friend or colleague?"
Depending on the answer that the participant gives, a score will be calculated and the customers will be classified into 3 categories:
Promoters: Customers who answered with a score of 9 or 10. These are your most loyal customers who are extremely likely to recommend your brand.
Passives: Customers who answered with a score of 7 or 8. They are considered neutral as they are satisfied with your business but not enthusiastic enough to tell other people about it.
Detractors: Customers who answered with a between 0 and 6. These are dangerous customers because they are not only unhappy and won't promote your brand, but they are also able to discourage others from purchasing your products.
How is the NPS calculated?
NPS = Percentage of promoters (scores 9 and 10) - Percentage of detractors (scores 0 to 6)
The NPS is not expressed as a percentage, it is rather an absolute number lying between -100 and +100.
Average NPS score - all industries mixed
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Go beyond the score
Measuring NPS alone in 2021, even though it might please your manager, isn't particularly useful. Indeed it offers a benchmark score for your customer experience, but the real challenge is how to understand what is driving the NPS score and finding the many opportunities to improve it.
This is where you need to explore the key drivers behind your NPS. By understanding your customer's experiences in more detail, you can establish the most important aspects of the experience that influences their score. There are two ways you can look to achieve this.
The first is to gather follow-up questions and indirect feedback from different sources and correlate them with your NPS data. See our solution page on Direct/Indirect feedback collection.
The second option is to add your operational data from your CRM, ERP or cloud solutions to include more variables into your analysis and get segmented NPS scores based on these variables. See our Feedback Data Correlation page.
The NPS can still provide actionable change. Companies that have adopted NPS as one of their essential KPIs and are integrating it alongside additional feedback, and so are well-positioned to gain unique visibility into the sentiment of their customers and end-users. NPS that incorporates customer segmentation, additional user data, and most importantly feedback that identifies ‘the why' is the way to make this metric actionable.
The last step is perhaps one of the most important. Track how NPS evolves over time by viewing your average NPS within your departments and teams. This kind of business intelligence, effectively distributed to relevant parties, enables you to take informed action, transform your organization, and meet your business objectives.
Don't stop at satisfaction, create loyalty
The NPS goes past measuring customer satisfaction by determining how many of your customers are loyal to your brand. Measuring satisfaction is a good start, but your NPS is the perfect tool to identify true customer loyalty in your customer base.
Tracking feedback using the NPS also makes it possible for your team to identify detractors in real-time, before they raise any incident or churn. So your team can get in touch, anticipate and diffuse any issue before it's too late. See more at our Live Feedback Alerts page.
You can measure your initial NPS, then, at a later date, re-evaluate your score, and see if your strategies are getting results. By using an Experience Management solution, you can track this score, set goals and effectively benchmark your progress.
Having an Experience Management solution gives your team all the elements for continuous improvement while checking that your actions drive progress with reliable insights.
The Feedier Way
1 Create highly interactive NPS surveys
2 Ask personalized follow-up questions
3 Provide a comprehensive NPS dashboard
4 Get reports you can easily share with your team
5 Trigger real-time alerts to your team
The Smart alternative to Boring surveys
It's time to stand-out from the crowd. Feedier delivers a constant flow of insights that empowers your team to make decisions, improving people's experiences based on their environmental needs and behaviors.
Highly interactive forms
Correlated insights & trends
Live alert & assignment
Personalized team dashboards
Resources from the Feedier blog
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