How to Calculate Net Promoter Score (NPS)
Your Net Promoter Score (NPS) is a measure of how likely your customers are to recommend your products or services. It’s a good metric for determining whether you’re providing a positive or negative customer experience. So, it’s a good indicator of whether your business is set to grow; or whether you’re in trouble.
If you’ve got a high NPS, it basically means you’re doing well. It means that your products or services are meeting your customers’ needs. It means your customers are loyal. They’re satisfied, and they have a positive opinion of your brand. They’re going to help you grow through recommending you to others.
On the other hand, a low NPS suggests that something has gone wrong. Maybe your products or services aren’t up to scratch. Perhaps your customers feel you don’t live up to their expectations. Or maybe they simply feel that your competitors do things better than you. In any case, a low NPS is bad news. It means your customers may actively hinder your growth through negative word-of-mouth.
How to Calculate Your NPS
To begin with, you need to ask your customers a simple question:
On a scale of 0-10, how likely is it that you’d recommend our brand/ product/ service to your friends, family, or colleagues?
Depending on how your customers answer, you can put them in one of three groups:
- Promoters – Anyone who scores you 9 or 10. These are your loyal brand ambassadors. They’re going to keep buying you, and they’ll think nothing of recommending your products or services to others. These people are going to fuel your business’s growth. They’re good people!
- Passives – Anyone who scores you 7 or 8. These customers may be satisfied with your products or services. But if something better comes along – something shinier, or cheaper – they’ll think nothing of switching providers. They may recommend your products or services to others. But don’t count on it.
- Detractors – Anyone who scores you between 0 and 6. These customers are indifferent or disengaged. Or worse, they’re unhappy. They’re not going to recommend you to others, so they’re not going to help you to grow. In fact, they might actually hinder your growth with negative word-of-mouth!
Want to calculate your NPS? It’s easy!
How to Gather NPS Responses
There are a few ways you can ask your customers that crucial question:
- With a pop-up on your website.
- On social media (most platforms let you run simple surveys like this!)
- Using an online survey tool, like Survey Monkey.
- In an email, or via SMS.
- At the point of sale (you’ve probably seen customer satisfaction terminals in other shops).
- After handling a customer service enquiry – whether over the phone or elsewhere.
If you gather your NPS responses at various touchpoints along the customer journey, you’ll get a good overview of how satisfied your customers are in real-time. Perhaps you could do a fresh NPS calculation once a month, or once every quarter? That way you’ll be able to track how you’re performing.
We’ve got a detailed guide to gathering customer feedback, and pretty much any channel can be used to collect NPS responses.
How to Improve Your NPS
So, you’ve worked out your Net Promoter Score, and found it lacking. What’s gone wrong? Why don’t your customers want to recommend you to others?
Relax. You’ve identified there’s a problem. That’s the first step to fixing it. Now you just need to know where to look.
There are a few things you can do to try and find the source of your customer dissatisfaction:
Talk to Your Customers
Yep, it’s time to gather more feedback. You need to ask your customers more questions than that simple “how likely are you to recommend us”.
Collecting customer feedback means taking the time to understand what truly matters to your customers. And with these insights you can tailor every aspect of your business to reflect your customers’ needs. Head here to read our detailed guide to collecting effective customer feedback. Head here to read it.
Think About Why Customers Become NPS Detractors
This can be difficult. You might feel like you’re doing everything right. So why aren’t your customers satisfied? Or more to the point, why wouldn’t they recommend you to their friends, family and colleagues?
A good idea is to think of customer experience as a chain. It’s only as strong as its weakest link. Find your weakest link, and you’ll find the source of customer dissatisfaction.
Listen to the Voice of the Customer
Want to find the weakest link in your customer experience chain? Then you need a way of seeing the entire chain, at once. This means you have to listen to what your customers are saying at every point of the customer journey.
CXExplore is our Voice of the Customer (VoC) programme toolkit. We’ll tailor a method to gather feedback at every touchpoint. This will give you a detailed overview of your customers’ entire experience. If any of your processes or departments are letting you down, you’ll know where to focus your attentions to raise your NPS.
The end result will be an overall more satisfying experience for all of your customers. And satisfied customers tend to tell their friends. That’s why we call them promoters! So, in short, a VoC programme will unlock your potential for growth through converting your existing customers into loyal brand ambassadors.