How to implement Net Promoter Score (NPS)
A step by step guide to designing and implementing one of the most important metrics in Customer Service.
NPS or Net Promoter Score is a management tool that can be used to gauge the loyalty of a firm's customer relationships. It serves as an alternative to traditional customer satisfaction research and is claimed to be correlated with revenue growth.
Setting up your Net Promoter System, you will need to consider the following:
Determine the objective, or what your organization needs to learn.
This could have two sides:
- Relational NPS is determined simply by asking your customers how they feel about your organization overall. Relational NPS gives you a high-level view of customer satisfaction and loyalty. Could be annually, quarterly etc.
- Transactional NPS gives feedback after a specific interaction like a support call or after installation. Transactional feedback provides very direct feedback about an issue, allowing your organization to optimize different touchpoints across the customer lifecycle and giving each department a metric to rally around.
Craft the survey question, in simple terminology and make it easy for the customers to answer. For example “On a scale of zero to ten, how likely is it that you would recommend us (or this product/service/brand) to a friend or colleague?”
A free text follow-up question will drill down into the reason of the answer, you can use for example: “What is the primary reason for your score?” or “How can we improve your experience?”
Calculating your NPS. Customers can be grouped into 3 categories:
Promoters; typically loyal and enthusiastic customers.
Passives; satisfied customers, but not happy.
Detractors; unhappy customers, unlikely to recommend you, your product, or your service.
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.