Have you ever wanted to calculate Customer Experience? 

To be able to measure it and see if the product or service is appreciated in the market, you can. And it’s easy like one two three. A simple method and study of the Net Promoter Score does the trick. Designed and introduced by renowned strategists, the Net Promoter Score has been in the market for more than a decade.

NPS has been used by Fortune 500 companies simply to get the most valuable feedback for their products and services

So, what is the Net Promoter Score?

NPS measures customer loyalty and helps grow a customer base via customer feedback. Turning passive fans into active promoters, NPS connects the customer loyalty to a brand. Net Promoter Score is calculated using a two-question survey, 

Question 1:

How likely is it that you would recommend my brand/ product/ service to a friend or colleague? 

Answer is based on a 0 – 10 scale ( From not at all likely to extremely likely ).

NPS

The survey then asks a follow up question,

Question 2:

What’s the most important reason for your score?

The answer requires a few sentences no more than 50 words. However the customer always has the choice to write more.

Ask these two questions and you have the data you need to calculate your NPS & act on it. The survey is really easy to answer, and doesn’t require much time. Let’s move on to the mathematics of the NPS.

The score scale is set from Zero to Ten. Any answer from Zero to Six means these customers are detractors. ( Likely to bring up problems rather than benefits), Seven to Eight are Passives. ( Generally ignored from the final score. Not fanatic for the product or service). Nine to Ten are Promoters. ( The Real Deal ).

The NPS formula:

  • Net Promoter Score =  % Promoter – % Detractors. 
  • The lowest score can be a Negative Hundred.
  • The Highest can be a Positive Hundred.

Followed by three categories,

  • Above Zero means Good.
  • Above 50 means Excellent.
  • Above 70 means World Class.

Once the NPS has been calculated, the product or service can then be looked on  to make any corrections or changes. Many a times, the market choice and segmentation acts as a major KPI for the NPS. maybe a wrong market choice? 

NPS

Majority of the organisations and companies ask the question, How and when to deploy the NPS survey? The answer is simple. The Value of NPS comes from how you use the NPS. There are a few steps that follow the NPS survey and it’s implementation.

Step 1, How to implement the NPS survey?

Simply by sending an email, asking the Questions or sharing a link to the NPS form ( which many a times is a turn off for the customers)

Step 2, How many customers to shortlist for the survey?

If for example you have 1000 users, you should shortlist 1/90th of the users every day for a 90 day period, sending around 11 surveys per day.

However, do keep in mind the users might not provide feedback for any new release or updates done after their purchase. 

Step 3, Do i send the survey immediately after someone places an order?

For transactional business, depends on what you want to measure, customer loyalty for the shopping cart process? For product recommendations, wait for some time. Let the customer use the product. 

Step 4 Do i send an NPS survey after every product?

Depends on what you want to measure. Loyalty for individual customers or Loyalty to your company in general.

Sending the survey within the quarter is fruitful. Has higher efficiency & effectiveness. Wait any longer and the company loses the benefit. 

Follow up on an NPS survey is the most vital part of the survey. Lets not treat the customers as numbers regardless of how many surveys an organisation can get filled. At the end of the day, these surveys will prove to be the turning for any brand. Any product or service can build loyalty through customers if the right feedback is acquired and attained. This feedback is what will further produce opportunities for the brand to create updates and new releases, thus we now know the importance of feedback.

“Loyalty isn’t earned with a number. Loyalty is earned by creating authentic relationships with people post-survey”

Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.