What is NPS – Net Promoter Score?

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7 de October de 2021

Measuring customer happiness and satisfaction is extremely important for companies, especially for those that already know the value of good Customer Experience management. Therefore, the so-called satisfaction surveys are becoming increasingly known and carried out by various businesses. In fact, they are great allies of companies.

To help you understand how to create an effective satisfaction survey, we’ve developed this article that will introduce you to everything about the NPS – Net Promoter Score. Check out:

How did satisfaction surveys or NPS arise

The NPS, or Net Promoter Score, is a methodology used to measure consumer happiness with your company through a quanti-qualitative survey. A good example of a satisfaction survey are the already famous notes for telemarketing service provided by some telephone operators. This methodology is intended to provide an overview of consumer loyalty and how satisfied they are with the brand in question.

It emerged in 2003, thanks to Fred Reichheld, who wrote an article introducing the NPS methodology to the Harvard Business Review. This was the publication that gave rise to his book, “The definitive question” where he details the research better.

How does NPS work?

You’ve certainly done or at least heard about several other research methodologies, so why use NPS instead of so many others? The answer is simple: most of them don’t work as well as NPS.

Feedbacks do not happen at the right time to generate insights and results are not individualized, allowing a change in behavior by the company.

The Net Promoter Score was developed by listing responses to various questions, with repurchase rates, referrals and several positive indicators, in order to measure the relationship they would have with each other.

From this study, it was concluded that a specific question was directly linked with the positive indicators analyzed, in 11 of the 14 cases studied.

The NPS question is: “On a scale of 0 to 10, how much would you recommend Company X to a friend or colleague?”

With it, it is possible to quickly measure the customer’s feeling towards your company, after all, there is no better way to demonstrate satisfaction with a brand than by indicating the company to a friend.

NPS customer rating

Customers can be divided into 3 groups, according to their answers:

1- Promoters (grade 9 or 10)

These are customers who give this high score because they really like to use your product or service and see its value.

This group of people are called promoters, as they can actually promote your brand through referrals to friends or colleagues. In addition to being loyal to your company, they are people willing to give constructive feedback and respond to surveys.

Therefore, your company must cultivate the relationship with this group of customers and even think about rewards for them. It is also important to adopt strategies to attract more customers from this profile.

2- Neutrals (grade 7 or 8)

These customers are possibly satisfied with your company, but they are not loyal or engaged enough for a referral, or, if it happens, there are reservations regarding the product/service or company.

Precisely because they are not faithful, they can substitute their company for a competitor or for another option if they find a better offer or a more attractive condition.

3- Detractors (grade 0 to 6)

Unlike the first group of customers mentioned, detractors do not feel helped with the product/service offered by their company. In fact, the feeling is that in addition to not helping to solve the problem, the company brought even more frustration to the situation.

Therefore, instead of referring the company to friends, this group of customers exposes their negative experience with criticism.

It is necessary to pay extra attention to these consumers, as they need more support and attention. Once this profile is identified, it is necessary for the service team to quickly analyze and identify the causes of dissatisfaction and present an efficient solution.

It is recommended to focus time, effort and money on strategies to bring in more promoters and avoid detractors.

How is the NPS calculated?

To calculate the NPS, just subtract the percentage of promoting customers by detractors, and the result is your Net Promoter Score:

% PROMOTER CUSTOMERS – % DETRACTOR CUSTOMERS = NPS

Realize that neutral customers do not enter this account, therefore, actions to transform them into promoters need to be done, increasingly increasing your company’s satisfaction rate.

Some advantages of NPS

NPS quickly stood out from other surveys and no wonder, it has several advantages, such as:

Adaptability

You can keep the methodology and the basis of the question, adapting it to different market niches and situations. See examples:

  • “On a scale of 0 to 10, what is the probability of referring company X to a friend or colleague?”
  • “How likely is it that you refer product Y to a friend or colleague?”
  • “From 0 to 10 how much would you be willing to indicate brand X to a friend or colleague?”

Ease of application

The NPS survey can be performed by any company, regardless of industry size. It is possible to measure satisfaction at each point of the consumer’s journey or overall satisfaction. In addition to the company, being able to continuously monitor customer satisfaction, if the survey is running continuously.

simplicity and efficiency

For the company responsible for conducting the survey, the NPS is extremely simple, both to apply the survey and to measure the results, after all there is already a guide number that must be reached.

Thinking about the customers, this survey is also simple to be answered and takes a few minutes, without generating weariness or the feeling of spending too much time on something that might not make sense to them.

Power of immediate action

The main objective of NPS is to help companies improve their performance and retain even more customers. As it is a quick and simple survey, it is possible for the company to contact the customer and devise new strategies right after the feedback has been collected.

Less chance of manipulation

It’s true that every poll can be manipulated, but thanks to NPS’ single, straightforward question, this manipulation rate is greatly reduced. This is because it is a single and objective question, your consumer will not be influenced by the order of questions presented in the survey.

Benchmark

As the NPS follows a pattern, it is possible to rely on the rates of other companies to find out if your rate can be considered good or not. Of course, this rate changes depending on product, market and other factors. However, there is a general average that can help you:

  • Excellent – NPS between 75 and 100
  • Very good – NPS between 50 and 74
  • Acceptable – NPS between 0 and 49
  • Bad – NPS between -100 and -1

This type of research brings us several advantages. Among them, we list the speed with which the questionnaire is completed, which facilitates data collection. In addition, it is worth highlighting the ease with which this type of research is implemented, bringing us the result in a quick and easy-to-understand way.

We also highlight the standardization of this indicator, which makes it easier to understand the results and amplifies its ease of implementation in several companies.

And after NPS?

As mentioned, the NPS is a simple research methodology, but it is necessary to dedicate yourself after its realization.

What does your company usually do after receiving feedback from satisfaction surveys? This is one of the most important moments and just measuring the results is not enough, it is necessary to act!

Talk to your customer

Give an answer to your customer, after answering a survey he should not be without any return, after all, he took his time to answer it.

Ideally, the company should contact you shortly after receiving the feedback. Whether to encourage the Promoters or help resolve a problem | doubt of Neutral customers, or Detractors.

At this point, you can ask one more question and really understand why the grade was received, an example of which question can be used:

  • “What is the most important reason for the grade you gave?”

Like the NPS main question, this one is also adaptable and can be used to improve a specific company point or product.

Ready to take NPS?

Now that you have reached the end of this content, you certainly know how much NPS can be for your company, and we hope that we have helped you to understand more about this satisfaction survey methodology. If you want to know more tips about Customer Experience, keep an eye on our blog and social networks.

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