Net Promoter Score (NPS)
Net Promoter Score is a technique or a method of measuring your customers’ loyalty to your brand. Depending on your type of interaction with your customers NPS can be used in different ways. From transactional to periodical use, NPS will accurately measure what your clients feel about your business.
What is NPS – Net Promoter Score
NPS is a great tool, that is easy to use and understand. It consists of a scale from zero to ten and a very specific question: “How likely are you to recommend our service to a colleague or a friend?”. While this might come off as too simple, its value is anything but.
|NPS is used to:||• identify your brand’s promoters and most loyal customers|
• reveal a core for long-term customer happiness factors.
• customers are providing accurate feedback by using a scale system.
The greatness of NPS is certainly in its versatility, but still, there are some instances where NPS can even guide you in the wrong direction if you are not using it to fit your needs. Learn how to avoid using NPS incorrectly.
Types of NPS
There are two types of NPS, or rather, of using NPS:
- Periodical NPS
- Transactional NPS
Periodical NPS is being sent to a single customer or to a group of customers (pre-defined target audience), on a quarterly (or custom) basis.
Transactional NPS is provided daily, in every interaction with customers, so they can feed you with data at a much faster pace.
Any number between 30 and 100 represents positive feedback. Yet, we should break this down into 3 areas:
|Score 30 – 50 Let’s roll||You are OK, but it’s time to pull-up your sleeves to get past 50.|
|Score 50- 70 Deﬁne and conquer||You’re on solid ground and most of your users are happy, where most of them would promote your platform. But, you need to do some polishing to break into the next level. This polishing comes from evaluating the very top of the product hill, and your product goals for the next iteration of your service/product. |
You need to ﬁnd the niche that you want to focus on (customer happiness, product UI, speed, stability, etc) and now aim the NPS survey towards that niche. Having positive numbers in front of you then, means you’re headed in the right direction.
|Score 70 – 100 King of the Hill||Once your NPS scores are within this range, that means you’ve found a good product ﬁt, and want to stay there. If, however you ﬁnd yourself on a lower scale of NPS range use negative feedback to learn and adjust your approach.|
How to Calculate NPS
From a customer happiness perspective, the NPS brings a new point of view on grades collected by the support team. From the image above, 3 groups stand out:
- Demoters or Detractors
Having these three groups in the scaling system helps the business owners to:
- identify use-cases of each specific group
- based on that, change part of, or the whole customer support strategy
Looking into the three groups, we can say that:
- Promoters are positive about the service quality and are most likely recommending the service.
- Neutrals will not be walking promoters of the service, but will not make any negative impact too.
- Demoters/Detractors are the ones who you need to work with to improve the realtionship.
The calculation is simple – detract low rate percentage from high rate percentage:
% – % = NPS
Customer Effort Score (CES)
CES – Customer Effort Score
CES gives you insight into the information how effortless is it to work with you. Onboarding customers, nurturing them, resolving their issues, all come into the territory of customer care and you’ll want to know what your customers feel about your processes.
|CES is used for:||• measuring how easy is it for your customers to work with you|
• how overwhelming are your processes for your customers
• how easy is it to resolve an issue your customers might have with
What makes a CES the industry standard is a question-and-scale combination – “The company made it easy for me to fix my issue?” and the answers scale in the following order:
This approach tests the client’s objectiveness by asking them if it was easy to get the questions answered and issues resolved. By making clients read the options, there’s no reflexive rate. If it was, the rate would represent customer service satisfaction – since they are interacting with customer service at the very moment. Instead of numbers that can be misinterpreted, you give them statements that can not be tied to the customer satisfaction scale. This way, we are ensuring accuracy.
How to Calculate CES
Unlike NPS, CES has simpler math behind its metric system. It relies on calculating percentages for each rate/grade the customer service agent/rep received. To calculate the score, we simply get the percentage for each of the unique grades.
If you keep your user’s contact details during this evaluation and give them the option to leave comments, you can define a strategy for improving this score. Here are some steps:
- Examine the responses.
- Map the core reason for your customers to feel unsatisfied.
- Find overlapping areas and you’ll find your areas to improve.
You’ll find a list of reasons for low grades which you should address together with the team.
Interested in learning more ways in which you can utilize CES to your advantage? Check out our blog pages:
Customer Satisfaction Score (CSAT)
Customer Satisfaction Score (CSAT) is a methodology of identifying the level of customer satisfaction with the service your company provides to them. The standard question following the scale would be “How would you rate your experience with your [HERE GOES THE ENTITY YOU WANT TO RATE]”.
|CSAT is used to:||• measure customer service satisfaction|
• measure product layout usability
• measure features UX
By asking the right questions, we can narrow down the cause of NPS or CES rate drop. All these survey types are complementary to each other. We can use all three separately to properly navigate the product goal or whichever aspect of your business.
Same as with CES, the calculation is done by simply presenting percentages for each rate.
When the examination is performed, and percentages of “Very Satisfied” and “Satisfied” combined are below 75%, you should consider working with your customer support team on improving one or two things that can start building up the value of satisfaction.
Interested in learning more about CSAT? Check out our blog!