The most important thing in any business is the customers, having them satisfied and being aware of them is the first step to increase sales in your business. In this post we are going to talk about the Net Promoter Score, everything we need to know about it, how to measure it and the best practices to carry it out.
what is the NPS customers?
The Net Promoter Score is a tool used to measure customer satisfaction, and this is achieved by finding out their loyalty, all focused on the possibilities that a customer has to recommend your brand, company, product or service to other people. For this, the Net Promoter Score is based on asking a single question, which varies in its formulation and style depending on the brand. It can be questions like "Would you recommend our product to someone you know?" or "From 1 to 10, how much would you recommend the brand?", etc.
This is really important because the recommendations that users follow the most are those of the people closest to them, the advertising message that has the recommendation of a family member or friend generates much more confidence in customers than a recommendation from a person they do not know. This is why the Net Promoter Score indicator is so important, you get to improve your profitability through word of mouth marketing.
how is this NPS indicator calculated?
This should be as easy and simple as the actual question asked in the survey, but that's not enough, there are several steps to calculate this.
- Conduct a survey
The first thing you have to do is to conduct a survey among your customers and ask them to answer the following question: What are the chances from 0 to 10 that they would recommend the company? To ask this question, a simple and visual way is to do it in the form of a graph with different buttons for the numbers.
- Categorise the answers
After the previous point you should collect all the answers from your different customers and calculate how many you have in each of these 3 categories:
- Promoters: This category corresponds to those customers who responded with a score of 9 or 10. This corresponds to satisfied customers, these are the ones who will end up recommending your brand to their family and friends.
- Passive: This category corresponds to those customers who responded with a score of 7 or 8. These are customers who are not completely satisfied but not dissatisfied, so there is a risk that they will go to a competitor.
- Detractors: This category corresponds to those customers who responded with a score of 0 to 6. They are dissatisfied customers, these are dangerous because not only are you losing customers, but they can give a negative opinion of the brand, which can persuade new customers not to bet on your brand.
- Calculate the score
Once you have obtained these results, you can calculate the NPS. It is a very simple formula, just like the question asked.
Subtract the percentage of detractors (those dissatisfied customers who would not recommend you) from the percentage of promoters (those satisfied customers who would recommend you): This way you can easily determine how likely it is that your customer will recommend you. In this formula we leave out passive opinions because they cannot be considered either positive or negative. If you carry out this survey on a regular basis, you can find out what risks you are taking, opportunities and even what aspects you can improve regarding the experience of your customers.
Let's look at an example to make it all very clear: If you have asked the same question to 100 different customers and in the results you find 60 promoters, 10 passives and 30 detractors, the result of your NPS would be 30.
what are the best practices for NPS?
Thanks to the Net Promoter Score you will have an insight into how customers perceive your company and once you have measured it, you can compare it with your industry average to see if you are within the average or if you need to strive for better results.
Here is a list of best practices you can use in NPS to significantly improve your customer satisfaction:
- Monitor your customers
If you know your customers and are aware of their needs and requirements, you can keep them in mind at different stages of the customer journey and anticipate that good rating. If you can make your customer's experience helpful and friendly, it will increase the customer's satisfaction rate and they will end up recommending you.
- Action plan
Making an action plan is one of the best practices you can do, especially to be able to guide your employees according to the customer satisfaction indicators. You should create the steps to follow depending on the phase you are in and the level of customer satisfaction, this information must be at hand so that any employee can access it. The action plan must be clear and simple, as it has to be known by the whole team and must be understandable for everyone.
- Engage with your customers
Not only should you thank your customer advocates for recommending your brand, you should also get in touch with those customers who have been shown to be a customer retractor, only then can you understand the reasons why the customer has decided not to recommend your brand. It also helps us to improve our customers' experience to talk to advocates, if we find out what made their experience excellent, we can use it with dissatisfied customers.
- Ask open-ended questions
By asking follow-up questions we can understand why the customer has given us one score or another. What we are doing is getting customers to tell us honestly what is going wrong with their experience with us.
- Evaluate results
This whole process is a continuous process, that is to say, you must constantly monitor your results and take the necessary measures to improve them, all the time you must be analysing what is working and what is not, analyse the changes you have made and the effectiveness they have had on customers. It will also be very useful when evaluating results to analyse the critical comments that these customers have in order to know where you are failing.
- Take advantage of promoters
You have to worry about the detractors, but also remember that we have a high percentage of users who are happy with us. Use them in your campaign, word of mouth marketing is a great help to give credibility to your brand.
Remember, this metric is very important when it comes to finding out how satisfied your customers are, use it wisely and you will optimise your strategy and the opinion of your brand will improve.