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An introduction to NPS - Net Promoter Score®

You have to ask, in order to learn something — this statement, although seemingly trivial, holds a strong message about which we often forget in the process of creating customer experience, company, brand, or product.

In the era of Big Data, analyzing consumer behavior, and behavioral marketing, what is most important begins to lose its significance — the client’s opinion. This valuable data is absolutely uncountable due to its complexity and diversity.

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The Net Promoter Score (NPS) has been created precisely for the purpose of counting that data. Fred Reicheld took care of it, and devoted nearly 12 months to develop the NPS indicator. 4000 research participants, 6 different trades, 20 types of answers, over a dozen scale variations. Nothing happened by chance in terms of creating NPS. Dividing the respondents into three client groups constitutes an effect of analyzing correlations between answers and the customer’s actual behavior. In every trade it was precisely the question concerning the tendency to recommend that always correlated — sometimes stronger, sometimes weaker, but always did.

NPS constitutes a perfect compromise between the precision of measurement and its simplicity. It’s an acclaimed standard of measuring client loyalty, the newest “trend” concerning researching satisfaction. The moment you start using it, will be the moment you open your eyes to how much you still don’t know about your clients. The remarkable simplicity of NPS made it so popular — because it is simply easy to understand. But what’s most important is that it allows you to take action here and now.The One Number You Need to Grow
The Idea in Brief Many companies-striving for unprecedented growth by cultivating intensely loyal customers-invest lots…

Net Promoter Score question

How likely is it that you would recommend our company/product/service to a friend or colleague?

By sending the first NPS survey you completely change the manner of measuring the satisfaction of your clients into a countable value which you can analyze in time.

This question is often referred to as the ultimate question.

How does NPS work?

People invited for the NPS survey assess your service or product on the scale from 0 to 10. After providing the answers they are divided into three groups:

NPS score

Your NPS score is presented as a number on the scale from -100 to100. Calculating the score is very easy. All that is needed is to perform a simple calculation:

% promoters — % detractors = NPS score

Why isn’t the % of neutrals included in the calculation? The NPS method theory assumes that they do not harm or help your company.

Taking advantage of our platform you do not have to worry about creating the Net Promoter question or calculations. Just select the NPS question from the list or use a ready-made survey template.

Is my NPS score good?

We hope so! The NPS score is presented as a value on the scale from -100 to 100. The NPS standard assumes:

  • a score between 0–50 as a good score,
  • great score is one between 50–70,
  • a score above 70 is regarded as a world class score.

Why does NPS work?

It helps to understand the clients’ perspective and their needs.

Answers to the following open question provide a clear signal in what direction should the changes concerning your service or product go, for your company to generate larger profits.

You show that you care for the client’s opinion…

… of course if you intend to do something with that opinion. It is very important. If you won’t do a thing with the provided opinion, then it’s not worth asking the clients. Consider, whether your company is ready to act.

You can easily compare yourself with the competition.

Perhaps you are fighting for clients in a field which is completely superfluous for them. A constant battle for promotions and lowering prices often loses with the very human need of providing good quality services, mutual trust, and advising.

Monitor your progress.

The first NPS question is just the beginning. In order for it to have more sense, it should be repeated cyclically. Thanks to this, on the axis of time, you will see how the satisfaction with your products or services changes for better or worse.

Remember, the NPS method does not consist in being better than you really are. Constantly verify whether the so called closed loop (meaning efficiently reacting to the client’s opinion) produces the target results.

How to act with every type of client

Detractor (0–6)

Such a person is most often offended by customer service and the heartlessness of your processes. One has to approach such people with understanding, because a displeased client may very easily turn into a highly committed critic of your services and products.

He or she won’t ever return, or even worse, will start to encourage others to do the same.

What’s worth to do?

Regardless whether your company is to blame, or any other factor was decisive, it’s always worth to say sorry and show empathy.

If you are able to fix the problem quickly, do so. If the problem requires engaging other people and will take a few days, propose a temporary solution. If the problem can not be solved, explain it to the client and ensure that you will do everything it takes to fix it in the future.

How to change a critic into a promoter?

It’s simple. It often takes just a little to make it happen. Even if you are unable to solve the client’s problem, the sole discussion may result in that your relations are going to undergo a complete change. A client who will receive a rational answer, and a basic apology, is going to give your company a second chance much more willingly.

Passive (7–8)

Quite often this is a large group of clients. They are moderately satisfied, but are easily convinced to take advantage of competitive solutions.

How to hold them? The easiest way is to listen what do they want and make them not want to think about change.

What’s worth to do?

First of all, it’s worth to take advantage of an in-depth question in the NPS survey and learn the reason behind the score of 7 or 8. It often turns out that such a person is missing something in your services or product, and which is not true. Thanks to this, you are able to show the client that you are “here” and able to help.

How to change a passive into a promoter?

First of all talk. More than with the others.

It’s like marriage — if you don’t talk with your partner, he or she focuses the attention on other potential partners. It’s better for partners to argue, because then they explain their problems and needs. That is why it is necessary to talk with a neutral. As much and as little as that.

Promoter (9–10)

This is your most loyal client. Is willing to often recommend your services and products. Values the price and quality, and your company is precisely what he or she has been searching for.

Show him or her that you appreciate the loyalty.

What’s worth to do?

Propose participating in a special loyalty program or a membership in the group of the most loyal clients with access to exclusive products, benefits, or content. Such a person is willing to efficiently recommend your company to 5–10 people from its closest surrounding (home, work, friends).

How not to lose a promoter?

Show that you care for his or her opinion the most. Provide a sense of co-creating your organization, and having an impact on changes.

What’s next for you with Net Promoter Score?

At Startquestion we also carry out satisfaction research. Our NPS is at 72 (as of June 2017). More than half of our platform’s promoters consist in people who have reached us due to recommendations.

Most often the case is that someone had the need to carry out a survey in the X company and asked trade friends where is it possible to quickly and efficiently conduct such a research. That way he or she learns that a friend from the Y company knows, uses, and recommends the Startquestion platform.

That way, we develop our system — always oriented on the needs of clients.

The Net Promoter Score means more than just questions in a survey.

More than 70% of companies included on the Fortune 500 list, use this unique question in order to look at themselves through the eyes of clients and fully understand their needs and frustrations.

Because the gathered knowledge is so easy to use, Net Promoter Score constitutes the first step to mastering the process of solving their problems.

This one key question opens the access to creating new, deeper relations. Allows to listen and change oneself into an empathic brand, which inspires clients to be loyal.

Learn your score, learn your clients.

Try out Startquestion Platform — free of charge for 14 days

Net Promoter, Net Promoter Score, and NPS are registered trademarks of Satmetrix Inc., Bain & Company Inc., and Fred Reicheld.

Urszula Kamburov-Niepewna
Ula is a Content Manager with extensive experience in journalism and SEO copywriting. She is a specialist in creating content in HR and Marketing research, Customer Experience, and User Experience. She has been associated with Startquestion for five years and currently leads the Content Marketing team there. After work, Ula is an obsessive reader, a huge Harry Potter fan, and a traveler who grabs every opportunity to see a little bit of the world and taste (usually more than a little) good food.