Net Promoter Score, sometimes known as NPS, is a measure used in customer experience initiatives. NPS gauges how loyal customers are to a business. NPS ratings are calculated using a single question survey and are expressed as a number between -100 and +100. A higher grade is preferred.
The gold standard customer experience statistic, NPS®, is frequently cited. It was created by Bain and Company in 2003 and is currently used by millions of businesses to gauge and monitor how their clients view them. An NPS score is determined by the respondents' responses, which range from 0 (not at all likely) to 10 (very likely), and which place them in one of three categories:
Calculating the final NPS score is simple - just subtract the percentage of detractors from the percentage of promoters.
For example, if 10% of respondents are detractors, 20% are passive, and 70% are promoters, your NPS score would be 70-10 = 60
Converting detractors into promoters can impact your NPS and increase brand loyalty.
Relational NPS surveys are conducted frequently (i.e. quarterly or annually). The objective is to periodically gauge customer satisfaction and learn how they view your business as a whole. This information can be used as a benchmark for business success and to assess the state of client relationships over time.
Transactional NPS questionnaires are distributed following client contact with your business (e.g. during a purchase or support call). They are employed to gather information about a very particular subject and gain a detailed understanding of client satisfaction.
For the fullest understanding of your customer at both the macro and micro levels, use both types.
NPS may be used to gauge practically anything. You can track scores for everything from specific products, stores, web pages, or even staff members in addition to learning your organization's overall NPS.
Think about incorporating NPS into your marketing and customer service strategies as well. It can be used in conjunction with industry NPS benchmarks to determine how you stack up against your rivals. You will have a better understanding of your target market and learn how consumers react to social media advertising, your product or service, and customer service representatives. Gaining devoted patrons who advocate for the brand rather than merely being consumers is the aim.
NPS surveys are comparatively simple to make, but when choosing how to deliver them, it's critical to consider the long-term data use.
For a complete picture of your customers, we advise using an NPS or customer experience management platform. You can keep track of all interactions your business has with customers, both present and potential, using customer experience management solutions.
Once this system is in place, you can use NPS data to identify the touchpoints with the highest and lowest NPS scores.