The beauty of NPS® lies in its simplicity.
NPS (or Net Promoter Score) is a popular customer loyalty metric created by Fred Reicheld, Bain & Company and Satmetrix in 2003. NPS is one question that simply asks customers to rate their likelihood to recommend your organisation to a friend or colleague.
NPS is based on the perspective that every company’s customers can be placed within three types:
“Promoter” customers are enthusiastic and loyal, who continually buy from the company and ‘promote’ the company to their friends and family.
“Passive” customers are happy but can easily be tempted to leave by an attractive competitor deal. Passive customers may become promoters if you improve your product, service or customer experience.
Finally, “Detractor” customers are unhappy, feel mistreated and their experience is going to reduce the amount of which they purchase from you.
Detractor customers also have an increased likelihood of switching to a competitor as well as warning potential customers to stay away from your company.
Your Net Promoter Score is calculated by subtracting the percentage of detractors from promoters to get an overall NPS result. Your Net Promoter Score can range anywhere from -100 to 100 and is always displayed as an integer. To begin to determine and understand your Net Promoter Score, ‘the ultimate question’ must be asked:
“On a scale of zero-to-ten, how likely is it that you would recommend us to a friend or colleague?”
It is not only about asking for just a number and ending your survey. It is important to understand why each customer gave you their particular score as this will provide you with actionable items which can be targeted for effective process improvement or corrective action. This will also help you identify what your core strengths and competencies are.
Making the right improvements based on the feedback of your customers can help turn passive and detractor customers into promoters and increase customer loyalty and profitable growth.
And that’s where PeoplePulse can help you.
We’ll help you and your team save time by designing and project-managing your customer surveys for you, and can even prepare, present and workshop your results, so that you can focus on actioning the insights you’ll gain.
Get a Live Demo:
Call us on +61 2 9232 0172 to discuss your Customer NPS Survey needs, and for a free, no-obligation online demo. Alternatively, please click on “Get a Live Demo” below:
PeoplePulse’s NPS surveys can be mobile optimised to enable your customers to give you feedback from anywhere at anytime.
PeoplePulse’s easy to use charting tools enable you to compare your NPS scores by State, Year, Division and other any metric you choose.
The four key steps to effective implementation of NPS:
Understanding the contact or touch points and how they impact your customer and their experience is the first stage of your NPS system. These customer contact / touch points need to be considered regardless of whether the survey is ‘transactional’ or ‘relationship’ focused.
It is important to determine the links between your NPS survey questions and your company Key Performance Indicators (KPI’s). Consideration also needs to be made about the type of NPS survey that is conducted – transactional or relationship focused, sampling methods as well as the data collection method – online or telephone.
In order to make improvements, it is vital to understand what is influencing the behaviours and feelings of your detractor, passive and promoter customers who are providing feedback based on their individual customer experiences. It may be necessary to conduct post-survey follow-up to clarify feedback provided to effectively gain greater insight and strengthen the customer relationship.
Front-line, middle management and senior management is required to have an effective closed loop system. Front-line staff such as customer service, technical support and sales play a key role in developing promoters and neutralising detractors. Middle managers provide performance coaching and know how to manage excellent customer experiences. Senior managers help create and provide appropriate systems for recognition, communication and ensure the NPS results remain in line with strategy deployment.
The inclusion of such questions can dramatically increase the value you receive from running your customer satisfaction process.
Phillips Electronics tracked NPS for a sample of accounts over time and found that where NPS increased, revenue grew by 69%. Where it remained steady, revenue grew only by six percent. And where NPS declined, revenues actually decreased by 24%
PeoplePulse NPS Surveys – What you receive:
Why Choose PeoplePulse?
Trusted by over 1,000 organisations since we were established in 2003, PeoplePulse combines the very best in online survey software & reporting with your own Project & Account Manager – with you every step of the way. Survey reporting experts from our Insights Division can even prepare, present and workshop your results for you, so you can free up your time to focus on implementing the insights you’ll gain.