What is the Net Promoter Score?
The Net Promoter Score is an indicator that allows us to know and measure customer satisfaction with a brand, product or service. It allows us to anticipate the potential word-of-mouth of a consumer, and is calculated from a specific question concerning the recommendation of the latter.
Example : Would you recommend the use of this product to someone close to you?
The answer to the question is on a scale of 0 to 10. The higher the score, the more likely it is that the customer will naturally talk about the brand in question.
According to the score given by the customer, the latter will correspond to one of the three following profiles:
- Detractors : if the score goes from 0 to 6
- Passive : if the score goes from 7 to 8
- Promoters : if the score is 9 to 10
The different customer profiles
Detractors, score from 0 to 6
Detractors represent the “dangerous” profile for companies.
Often disappointed, they have the means to share their dissatisfaction through the many communication channels available to them. They can thus negatively impact the brand image. As soon as they are identified, these customers must be the subject of targeted action and follow-up plans in order to regain their trust and limit the degradation of the brand.
Passive customers, score 7 to 8
Passive customers are generally satisfied customers but not satisfied enough to give blind trust to the company. The risk? Infidelity towards competing offers! They are difficult customers to convert.
Promoters, score 9 or 10
Promoters are the most loyal customers. They are willing to be true brand ambassadors to their friends and family. The score of 9 to 10 is deliberately high to ensure that customers are truly attached to the products or services offered by the company.
Promoters represent a strong added value for the company and must be supported and rewarded accordingly.
How to calculate your NPS?
To get your NPS, you need to subtract the percentage of detractors from the percentage of promoters. The result is not expressed as a percentage but a number between -100 and 100.
Example: You have 70% Promoters, 20% Passives and 10% Detractors. Your NPS will be 50. A positive Net Promoter Score (>0) is considered an indication of good customer satisfaction.
With a score around 50 or above, it is a very positive NPS! It is important to think about how you compare to your competitors in the same sector.
What are the different types of NPS surveys?
The relational NPS evaluates the quality of the overall relationship with the customer and their loyalty without any particular recent interaction with the company. This score reflects the sum of customers’ past experiences with the brand. The focus here is on the overall and the long term. These surveys should be conducted on a regular basis (quarterly or annually) in order to collect enough data to assess the overall likelihood of recommendation. The objective is to obtain a vision of the customer’s feelings.
The advantages of this method
- to have a spontaneous NPS because it really allows to detect if a customer is attached to the brand (cold satisfaction survey)
- obtain a follow-up over time, note changes and the degree of desirability of the brand
- identify detractors to anticipate and establish action plans
The limits of this method
- the survey is not always consistent with the customer’s needs and experience (if the customer was disappointed 3 months ago, the survey is probably too late)
- it is complicated to compare one’s relational NPS score to competitors because companies rarely communicate it
On the contrary, the transactional NPS is obtained with a “hot” survey. This involves questioning the customer about a specific contact point that you consider important.
The survey is usually done after an interaction with the brand such as
- a purchase
- the subscription of a service
- a call to the support platform
- the use of an application
The advantages of this method
- Identify a problem almost in real time so that it can be passed on to the relevant teams
- Understand the needs and dissatisfactions of customers at each stage of their journey and be able to work on a precise improvement axis
- Be able to compare your results with the different departments in your team.
The transactional NPS is therefore an excellent way for network managers, regional managers or store managers to better manage the cohesion of their teams.
Limitations of this method
- Continuous involvement of the teams (a significant daily investment)
- This method is not sufficient to detect real ambassadors
- Not always sufficient to understand the customer’s frustration, it is sometimes necessary to combine it with a satisfaction questionnaire
How to use your NPS?
What to do with the NPS comments?
Optimize the response rate
Exploit these comments well
Clearly, Noota allows you to know :
- the topics most mentioned by the participants
- if the answers given are positive or negative
- the most urgent and most enthusiastic elements
You can then modify the information and create categories of responses to classify them according to your objectives. These tools are efficient and much less expensive than external services.
With Noota the process changes, you can process hundreds of thousands of lines of comments in a few minutes and extract the most relevant elements that will allow you to make informed decisions for your business while saving costs compared to using an internal resource or outsourcing this service.
The Satisfaction/Importance Matrix
Once you have collected enough feedback and structured your data, you can focus on the strategy to implement. To do so, you will need to classify the elements.
- Enhancing and communicating the elements that are important and that generate good satisfaction
- Maintain elements that are relatively low in importance but generate good satisfaction even if they are not a key strategic issue
- Monitor elements with relatively low importance and poor satisfaction. These have little influence but should not be changed.
- Prioritize those elements with high importance and low satisfaction. Your actions should focus on these attributes because they can be penalizing.
Note : to obtain complete and exploitable data, it is always interesting to combine the NPS score with other digital techniques. Also, adopting a customer culture within your business strategy will significantly increase your performance!