What is NPS?
Net Promoter Score, or NPS, is a metric that measures customer loyalty and satisfaction by measuring the likelihood of customers recommending a company’s products to others. NPS surveys often only contain one question; “On a scale of 0 to 10, how likely are you to recommend our products and services to others?”. This question is followed by a 0 to 10 scale where respondents can choose a score to indicate their likelihood to do so
How to Calculate NPS?
NPS survey responses are used to categorize customers into the following three groups:
Promoters: Choose a score of 9 or 10
Promoters are highly satisfied customers who draw in more customers through referrals.
Passives: Choose a score of 7 or 8
Passives have no effect on your company’s brand image as they are indifferent toward their experience with you.
Demoters: Choose a score between 0 to 6
Demoters are unhappy customers who may potentially dissuade new potential customers from trying your products/services.
After respondents are categorized into the aforementioned groups, the following formula is used to calculate NPS:
NPS Score = % of Promoters – % of Detractors
NPS scores will always be between +100 and -100, where a negative score indicates more detractors than promoters and a positive score indicates more promoters than detractors.
Instead of the formula, an online NPS Calculator can be used to calculate your NPS score. Voxco’s NPS Calculator is quick and easy to use and makes the NPS calculation process very simple. Additionally, our NPS calculator allows you to compare your NPS score to industry benchmarks to help you understand where you stand in regard to industry competition.
Strategies to Improve your Net Promoter Score
An improvement in your NPS score denotes increased customer loyalty and an increased volume of referrals which can translate to a higher customer lifetime value, and an overall increase in revenue.
Focus on Improving CX
When customers recommend a product or service to others, it is because they had a great customer experience. You have to be customer-centric and keep customer needs and wants as the main focus. You can do so by mapping out customer journeys in order to understand each touchpoint better so that you can outline areas where improvements need to be made.
Being customer-centric helps you identify customer needs which allows you to meet customer expectations. This makes them more loyal to your company and improves your NPS score.
Additionally, by being customer-focused, you can even understand customer journeys better, which allows you to improve on consistent service across all touchpoints and deliver a great end-to-end customer journey.
Provide Good Customer Support
Good customer support can translate to high customer loyalty and satisfaction. You can improve customer support by reducing response time through live chat and smart call routing. This boosts response time which can boost customer satisfaction.
Additionally, by providing customers with a resolution in real-time, customers are happier with the service and are more likely to be more loyal to your brand.
Use Customer Feedback to Improve NPS
It would help if you did not only collect customer feedback, but also act on it. Feedback becomes useful once it is analysed and valuable insights are extracted from it in order to build your brand.
In your NPS survey, instead of just having just one question regarding customer likelihood to recommend your products, you should also add a question asking customers how you can improve their experience. This shows customers that you care about their feedback and it encourages them to provide you with useful feedback.
Regularly Measure Customer Feedback
Customer feedback should be collected on an ongoing and regular basis in order to understand if implemented changes are positively affecting your NPS score. If the improvements aren’t resulting in a positive change to your NPS score, you must collect more feedback to understand where you are going wrong.
Provide Customers with Self-Service Options
Customers want their problems solved in the quickest way possible. By providing customers with FAQ pages or product videos, you can help customers solve their own problems promptly. Customers appreciate this as they can solve the problem without reaching out to a support team and waiting for their response. Therefore, this increases customer satisfaction.
Improve your Products and/or Services
Good products and services will create a positive perception of your brand in customers’ minds and will increase customer satisfaction. Additionally, as they have better experiences when using your products/services, they are more likely to remain loyal to your brand.
Therefore, enhancing your products and/or services can greatly improve your NPS score, significantly increasing customer loyalty.