NPS – Net Promoter Score is a customer loyalty measurement method also called Net Promoter Score or Customer Promoter Score.
Many different methods are used in customer experience measurement. NPS (Net Promoter Score), which emerged in the 2000s, has been a very popular measurement method in recent years.
What is NPS?
Net Promoter Score is a customer loyalty metric that calculates the likelihood of your customers recommending you based on the answer to a single question and shows you this with a score between -100 and +100.
NPS was developed by Fred Reichheld, Bain & Company and Satmetrix Systems.
NPS was first introduced by Reichheld in the article “One Number You Need To Grow” published in Harvard Business Review in 2003.
How should the NPS question be worded?
The NPS question should be about the likelihood / probability of recommendation. The answer to the question should include score options from 0 to 10.
NPS questions can be as follows:
- How likely are you to recommend us to your acquaintances?
- How likely are you to recommend our brand to your environment?
- Would you recommend us to your acquaintances? Give a score between 0 -10. 10 for would definitely recommend, 0 for would never recommend.
- Would you recommend our service?
- How likely are you to recommend this company to a friend or colleague?
- If you were to rate the likelihood of recommending our company to a friend on a scale of 0 to 10, how many points would you give?
How is the NPS calculated?
When calculating NPS, your customers are categorized according to their responses as follows:
0 – 6 = Detractors
7 – 8 = Passives
9 – 10 = Promoters
NPS = (Number of Promoters – Number of Detractors) / (Number of Respondents) x 100
In the calculation, passives with 7 and 8 points from these three groups are not taken into account. The other two groups are proportioned as plus (+) and minus (-), resulting in a percentage score between -100 and +100. This score represents the NPS®, in other words the Net Promoter Score of your business.
The most interesting thing in the NPS calculation is that those who score 0 and those who score 6 have the same effect.
Which channels can NPS be measured?
You can convey the NPS question to your customers through different channels. It is possible to measure NPS through channels such as website, IVR, SMS, e-mail, mobile application, kiosk.
How often should NPS be measured?
Today, many companies announce their NPS scores for the relevant period along with their periodic financial results.
NPS reports should be made periodically, such as quarterly, semi-annually, annually, and it should be ensured that a customer is asked an NPS question at most once in the same period. Measurement should not be done on a single day and should be evenly distributed over the relevant period.
How should NPS results be evaluated?
The first question that comes to mind after NPS measurement: What is the NPS score considered successful?
The answer to this question will differ sectorally and regionally. Firstly, you should look at the sector average in which your business is located. While +50 points is a very successful score in some sectors, +20 points can be considered successful in some sectors.
However, we can say that; As long as the NPS does not fall to – (minus), there is no need to panic, but if there is an NPS in a negative value or a downward trend, your business may be bleeding.
It is very important to follow the NPS score periodically. Measure NPS instantly and compare it on a monthly, weekly or even daily basis.
Instead of a general NPS of your brand, you can measure NPS on the basis of sales channel or product, service in your business. This breakdown can tell you more.
It is possible to have research companies measure NPS, but the healthiest method is to ask the customer for an instant NPS score at the touch points.
We see that the vast majority of companies in the Fortune 500 list make NPS measurements. NPS results are usually announced together with financial results.
The last known NPS score of Apple, the world’s most valuable brand, is +47. Google’s NPS score, which is the leader in the search engine market, is +11. Google’s mobile application store Google Play’s NPS score is +30. Facebook, which has been on the agenda with scandals recently and has lost blood, has a low NPS score of -21.
You can access the announced NPS results of the largest companies in this article.
Are there any negative aspects of using NPS surveys?
There is a lot of controversy about NPS measurement. It is not possible to say that NPS is a one hundred percent accurate method. Various criticisms are made especially about the calculation method. The fact that customers who give 0 and 6 points are considered equivalent in the calculation, and those who give 7 and 8 points do not affect the calculation raises questions. Check out the 6 most common mistakes in NPS measurement.
Considering that it is very difficult to get 10 or 9 points from people who are perfectionists, we cannot ignore the fact that the scores given may vary from person to person.
Instead of using NPS as a customer experience measurement method alone, it would be correct to position it as an auxiliary measurement method next to the evaluations made with Likert scale or CSAT. After the NPS question, it will be useful to ask why your customer gave this score with an open-ended question.
Start NPS measurement now
You can easily measure the NPS of your business with Wiseback. Contact with us , start measuring NPS and managing customer experiences instantly.