WHAT IS NPS
NPS or more commonly known as net promoter score is a metric system which measures the loyalty of customers towards a company. NPS provides companies with valuable insights as to how to move forward with their business. It is an index ranging from -100 to +100 measuring customer’s loyalty to the brand. It is a single question survey for customers in which customers are asked the likelihood of them recommending your products to someone else on a scale of 1-10, 10 being the desirable score. NPS was developed in 2003 by Fred Reichheld, a partner at Bain and company. It helps the companies to know how well they are treating their customers and where they need to improve.
HOW TO CALCULATE NPS?
The respondents to this survey can be divided into three groups:
PROMOTERS– People who answer between 9-10 are classified as promoters. These are the people who are completely loyal to your brand and will even spread good word of mouth about your brand. So, you do not need to spend a lot of resources on retaining them as they are already loyal to you.
PASSIVES– People who answer between 7-8 are classified as passives. These are the people who are satisfied with your brand but not loyal to it. These people are vulnerable to competitive offerings. So, the company needs to work a little bit more to turn these passives into promoters.
DETRACTORS– People who answer between 0-6 are classified as detractors. These are the people who are completely dissatisfied with your product and will share bad word of mouth with others let alone recommend you to others. Now these are the main target of the business as it will take a whole lot of their resources to convert these detractors into promoters.
NPS is calculated by subtracting the percentage of detractors from the percentage of promoters and the score will vary between -100 to +100. This process might seem overwhelming at first but Survey2conect makes it all the more easy.
NPS has been proved to be one of the most effective way of collecting customer feedback and can serve as a useful predictor of business growth. Contrary to other practices of collecting feedback through long and lengthy surveys, this method has a high response rate, is easy for customers to fill and is a lot more easy and less time consuming to calculate final score. It helps the companies a lot in getting a quick read on the sentiments of their customers. Every business needs to know who their loyal customers are and with whom they have to put in more effort to convert them into long time loyal customer and NPS is the best way for measuring your customer’s loyalty and act upon it. Also NPS is a globally used metric system which helps you to compare your results to other brands in the same industry and helps you get a more clear understanding of your company’s current situation as well as help you to create a vision for your company’s future and all the processes along with it.
BENEFITS OF NPS
- USER FRIENDLY-
NPS is the easiest survey method there is. It is just a single question asking whether the customer would recommend the product to others or not. It is a lot less time consuming and is a lot easy to calculate the results and analyze them.
- HIGHER RESPONSE RATE-
There is relatively higher response rate in NPS than other classic surveys as it takes even less than a minute to fill it out and gives the customer a chance to engage with it. You can send it via emails, SMS, popups or through any other medium and it will still get a higher response rate just because of the sole reason of less time consumption.
- REDUCES CUSTOMER CHURN-
NPS not only helps in finding out the promoters of your brand but also gives you a clear number of people who are more likely to leave you. Customer churn means customers who stop using your products or services. After their identification, you can start with discovering reasons for their dissatisfaction and start by making a plan to retain those customers.
- HELPS IN GROWTH-
NPS is a great way to strategize future actions of the company by actively working on the recommendations received through NPS.
HOW TO INCREASE NPS
- BE CONSISTENT WITH MONITORING YOUR SCORE-
Keep a regular check on your net promoter score and monitor the trend. If the trends start declining, then it calls for immediate action by analyzing what is going wrong and how to improve it.
- DON’T IGNORE PROMOTERS
This is the number 1 mistake that most brands do. It is true that your promoters are really unlikely to leave but still they need a regular communication from the company.
- RESPOND TO THE DETRACTORS-
It is really important that you respond to your detractors in order to listen to their experience and understand their experience as it really sends a positive image in the minds of your customer.
After that take their query seriously and try to solve it to the best of your capacity and follow up with them.
HOW TO CREATE NPS?
START WITH BASIC QUESTIONS-
If you do not have the information of your customer in your CRM, then it is really important to ask these questions as they are really helpful while generating response to the survey. But if you do have the required information then try to avoid it.
This should be the main focus of your survey, the question that is going to determine your customer’s loyalty towards you.
On a scale of 0-10, how likely are you to recommend Survey2connect to others.
ASK THE REASON FOR RESPONSE-
The next question should be, ‘What is the reason for your above response’?
Generally, promoters might give a really short response for this or might not even respond to it, but the main focus of this question is on detractors as they usually explain the complaint or the issue that they faced. This column is really important as it is going to help you to determine your future course of action.
WHAT TO DO AFTER COLLECTING FEEDBACK?
The first step is to find out the percentage of promoters, passives and detractors. After that you need to find out your net promoter score by subtracting the percentage of detractors from the percentage of promoters. The next step would be to find out the trend of your survey and then look for the suggestions given by people for improving your services. Survey2conect helps you to go through this process with utmost ease and has a highly efficient ticketing system which that brings the issues than need to be solved to your attention immediately and works on a real time basis. It really helps you to formulate your strategy for future course of action.
The most important step comes after it which is closing the loop by working on those suggestions and following up with your customer.
CREATE AN INSIGHTFUL EXPERIENCE WITH SURVEY2CONNECT
As mentioned above NPS is a great metric system which can provide with highly effective results if executed with the right method.
NPS may not be a complete management tool in itself but followed by some suggestions and some other responses, it gives highly effective results and measures customer satisfaction which in turn gives adequate course of action for the future of the company.
Survey2connect not only helps you in creating your survey but supports you throughout the whole process. S2C is trusted by global business organization like SABB , Mobily , Bupa , DUBAI Assest Management and many more. We create this journey helpful for you and give you full support by analyzing your reports and giving insightful solutions. Survey2connect takes our customer comfort very seriously and makes the whole process from beginning until the end really easy.