If you work in Customer Service or a Contact Centre, we’re sure you’ll be very familiar with NPS. However, as this blog title suggests, we’re not just talking to people who traditionally work with NPS in this post. This metric is useful to people in many other areas of a business, so let’s take it back to basics and have a look at what it is.
What is NPS?
Net Promoter Score (or NPS) is a customer loyalty metric, measuring customer experience and expected business growth. So how do you get this number?
Here is the definition as proposed by Bain & Company. There are 3 types of customers – Detractors, Passive and Promoters. As you’ve probably guessed – detractors are the least satisfied customers that are most likely not to purchase again, and most likely will spread negative feedback about your business if their issues are not solved. They rate you between 0-6. Passives are typically satisfied but not overly loyal, may be open to competitors and probably won’t spread any word about you – negative or positive. They’ll rate your business between 7 and 8. Lastly, there are your Promoters – the loyal and enthusiastic customers who will sing your praises and give you 9’s and 10’s.
So to work out your NPS from these figures, you take your % of detractors and minus it from your % or promoters. Easy right?
How can we use this info?
So now you’ve got a clear, overall impression of what your customers think of your brand, why is it not being used by every department in a business?
There are so many different points of contact outside of a Contact Centre or Service team that could be affecting this stat. Recently we attended the Engage CX Marketing Summit where research by IDC claimed that at Aviva, the whole company is accountable for their NPS and it is a key marketing stat. We also heard from Virgin Holidays about they redesigned their whole ‘pre-holiday’ experience and comms around their NPS scores.
You can use this information across various different departments. For example, we’ve all unfortunately had the scenario where we’ve had to make a complaint or had a negative interaction with a brand, given a pointed ‘1 star’ in the follow-up survey – only the next day to get a marketing email about a new product or ‘excellent’ service they’ve just launched. How infuriating is it to be pushed to purchase again, when you’re in the middle of trying to remedy the last dispute? So an example of how the Marketing department could use NPS is to divide their customer lists into the 3 groups (detractor, passive and promoter) when deciding who to send campaigns to. Then you can target your most loyal customers for some fabulous feedback, get a detractor reach out process in place to find out why your most dissatisfied customers are unhappy; and come up with a winning campaign to convert those passive’s into promoters!
That is just one example of how one department could use NPS to their advantage. This feedback can also really help highlight processes and internal policies that may be working well for your department but are turning your customers against you. Therefore, we recommend not just using it to gauge customer satisfaction – but across the company to help streamline service and create the happiest customer base you can!
Thanks so much for reading. On May 2nd, we are hosting a webinar on ‘Customer Feedback, Loyalty and NPS proving ROI‘. If you would like to hear more about our experience and industry recommended best practice for measuring customer feedback and how to translate this information into the financial impact of your Customer Service – check out our Events page for more info.