Measuring Customer Satisfaction: A Guide to NPS

Measuring Customer Satisfaction: A Guide to NPS

We’ve said it before and we’ll say it again: these days the customer experience is a key driver for consumers when it comes to selecting brands to invest in- it’s not just about the pennies anymore. In fact, when surveyed, 55% of customers admitted they’d be prepared to pay more for a better customer experience (Defaqto Research). A good way for brands to measure the sentiment of their customers is through Net Promoter Scoring, aka NPS…

 

What is it?

NPS is a way to qualitatively measure customer loyalty, identify the customers who’re happy and- most importantly- identify the customers who’re not so happy; enabling you to take positive action to turn their situation around.

 

How do we get it?

NPS is based around one, key question:

“How likely is it that you would recommend our brand/product/service to a friend or colleague?”

 

How do we calculate it?

Percentage of Promotors minus the Percentage of Detractors.

 

How do we use it?

The results of the survey should be used to identify and encourage brand loyalty, as well as rectifying customer dissatisfaction.

If a customer scores a 9/10, they’re classed as a Promoter.

If they score a 7/8, they’re described as being Passive (we don’t know if they’re leaning more towards leaving, staying- they’re right on the fence and need to be swayed towards the 9/10!).

If they scored a 6 or below, they’re classed as a Detractor.

Each group needs to be treated differently and you might decide to add another question, depending on the result of the first. For example, if a customer is a Detractor, then you may ask “What can we do to improve your score?”

 

Some things to bear in mind…

• NPS correlates to customer loyalty/satisfaction. If you find yourself needing more details, then be pro-active: create further customer surveys/polls, increase social listening etc.

• Take action. If you’re not going to respond to your customers’ feedback and engage with their needs, then there’s really no point in hosting the survey in the first place!

• Each of the three categories prompts different responses. For example, Promoters can be rewarded and encouraged with loyalty packages, whereas Detractors will need to have their thoughts, feelings and issues listened to, addressed and the situation turned around- pronto.

• NPS is about the performance of the brand as a whole, not about individual employees. No individual should be held accountable- the loyalty and satisfaction of a customer is a group effort!

 

 

 

Think you need help with your customer contact? Simply get in touch.

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