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Scale Your Success with Net Promoter Score

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.

NPS Ranges

Any number between 30 and 100 represents positive feedback. Yet, we should break this down into 3 areas:

Score 30 – 50 Let’s rollYou are OK, but it’s time to pull-up your sleeves to get past 50.
Score 50- 70 Define and conquerYou’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 HillOnce 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
  • Neutrals
  • Promoters

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

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