Getting feedback from your customers is the cornerstone of understanding their true needs and how you're meeting them (or not).
One tool for getting that feedback in a consistent way is Net Promoter Score (NPS).
NPS is a single number that measures the loyalty of your customers. Used by many organisations, it makes it easy to compare your customer loyalty to either competitors or the average for your industry sector.
To calculate your NPS we need to ask a very simple question...
On a scale of 0-10, how likely is it that you would recommend our company/product/service to a friend or colleague?
😀 Identifying Promoters
Those who answer with a score of 9 — 10 are considered your promoters — those who actively evanglise you to friends and colleagues.
😐 Identifying Passives
Those who answer with a score 7 — 8 are considered passives — the people who have no strong opinion either way. They won't go out of their way to promote you, but they won't harm you either. In other words, the "could do better" group.
☹️ Identifying Detractors
Those who answer with a score 0 — 6 are considered your detractors — those who aren't likely to recommend you and might even tell others to avoid you.
🧮 Crunching the numbers
Once your survey responses are in, the numbers can be crunched and your NPS score calculated. Being a number, it’s easy to use it to track customer loyalty over time, or between organisations.
🤯 Making sense of the numbers
Companies that take NPS seriously build improving their score into every aspect of their operations. Goals are set based upon achieving an improvement. Meetings start with a summary of recent NPS feedback. Incentives are paid based on achievement of improvements.
According to global NPS standards, a score of above 50 is good, and above 70 is outstanding, although few companies achieve such levels.
A good way to use NPS is to look at the score of a close competitor and see how yours matches theirs — many companies publicly report their NPS. If you're willing to pay, Forrester has published the NPS scores for 260 brands in 16 industries.
What is a "good" score for one industry might not be good for a different industry, due to how consumers experience different services. For example, here's an interesting graph showing how scores can range from 2 for internet service providers to 58 for speciality stores.
ℹ️ Can we help?
At Humanise.AI we think that NPS questions should be built into every interaction a customer has. We do that with our PlatformOne communications system — building automated customer experiences that conclude with an NPS question. By collecting data continuously, we can help you get a finger on the pulse of how your business is performing on a day-to-day basis, rather than just making it a one-off exercise.
To find out more, contact us at email@example.com