"This phrase is very common in digital marketing, as you need to analyse all your actions to be able to observe their performance and see if you are on the right track or, on the contrary, you need to make changes.
For that, different metrics are used, which vary depending on the strategy and objectives you are carrying out. Today we bring you what is the NPS or Net promoter score, a metric to measure customer satisfaction, how to calculate it and what it is used for. Keep reading so you won't be left with any doubts!
what is the NPS?
NPS or Net promoter score is a metric that measures customer experience and is an indicator of customer satisfaction and loyalty, so you can measure the likelihood that customers will recommend you.
this metric has become one of the main KPIs for many companies and brands to monitor their long-term ability to satisfy and retain customers.
NPS is measured on a scale of 0 to 10:
- 0-6: detractor customers. they show no positive behaviour, users here may even have had a bad experience and their opinions were negative. they are dissatisfied customers.
- 7-8: passive or indifferent. Here are satisfied customers but who are not enthusiastic about your brand and might switch to another if presented with a better offer.
- 9-10: Promoters: People who are loyal to the brand, like your product or service and therefore continue to buy. These are the ones who leave positive reviews and recommend your company to others.
In other words, the higher the NPS, the more likely it is that the customer will recommend your products, services or brand in general, because it means that they are satisfied.
how to calculate the NPS?
We have already mentioned that the NPS formula is measured on a scale from 0 to 10, but first your company must ask the following question: How likely are you to recommend brand / product or service X?
Once all customers have answered the question and you have the number of detractors, passives and promoters it is time to go on to calculate what the NPS index is. The formula is as follows:
To arrive at this formula you first have to convert the number of promoters and detractors into percentages, passives are not taken into account, and then you apply the subtraction that we have explained and the result is the NPS of your company.
Let's give you an example to make it more visual and easier to understand. Imagine that you have interviewed 100 clients, 60 of these have been promoters, 30 passive and 10 detractors. We would subtract 60-10, obtaining an NPS of 50%.
The result is that there is a 50% probability that those customers who have responded to your survey after making a purchase will recommend you.
As you can see, this result is useful to know what is the probability of them recommending you, their level of satisfaction and to identify the customer's perception of your brand.
why is it important?
Calculating the NPS is important for your company because when you ask the question of how likely it is that they will recommend you, you are evaluating not only customer satisfaction, but you can also take advantage of these opinions to delight those customers and continue to maintain communication with them. Something very important in digital marketing and the methodology of Inbound marketing, is that keeping a customer is much cheaper than making a new one, and continue communication and establish a relationship is essential.
Among the reasons why it is important to calculate these KPIs in your company are:
- it helps you to evaluate the loyalty of your customers. Once you know the data you know how many of your customers are loyal, and therefore fit your ideal customer or buyer persona. Knowing what percentage of those customers are promoters helps you to create strategies to maintain communication and get them to be regular customers.
- it helps you to improve. If the opinions about a product or service are low and you get a lot of detractors or passives, maybe it is time to make changes.
- it helps you in your referral marketing strategies. A very valuable thing for companies is referrals, because word of mouth works better than many advertising campaigns. Consumers trust a review from an acquaintance, friend or family member more than advertisements.
The Net promoter score has long since become the main metric for most companies and brands, but the purpose of the NPS is not to judge customers, as they have their own opinion, but to evaluate products, strategies, content, etc. It helps you to recognise your weaknesses and find solutions to them.
It is also a simple calculation compared to other KPIs, so don't be afraid to include it in your analysis plan.
we hope you enjoyed reading this!
