NPS Score: A Key Metric to Measure Your Customer Experience


NPS Score

When a person has to buy a new phone, what he/she does is checks its reviews and feedbacks on the internet or ask his/her friends at a personal level. Based on the feedback collected, the person may either feel happy or sad about his decision. But, have you ever thought about the factors that lead to this disparity in customer reviews and feedbacks? Of the multiple factors involved, the most important role is played by the “customer experience that they had while making a business transaction such as the purchase of a new product.

Customers generally rate their experience with a company on a scale of 0 to 10, of which ‘0’ implies bad and ’10’ implies the best. This rating plays an important role in determining the company’s Net Promoter Score or NPS.

NPS is a contact center metric that measures the customer satisfaction level with your brand. Used to measure the customers’ loyalty towards your brand, NPS is based on the answers received from the customer for question such as, “How likely are you to recommend our product or service to your friends or family?” The responses for such questions may range between 0 (very unlikely) and 10 (very likely) based on which the customers are categorized into three different groups:

1. Promoters, who answer 9 or 10
2. Passives, who answer 7 or 8
3. Detractors, who answer anything from 0 to 6

Promoters are your real fans. They are in love with the product range offered by your company and are their repeat buyers. Be ready to earn free fame and name for your brand. To an extent satisfied with your service, passives can easily switch to a competitor brand if given a better/same opportunity. They neither spread any negative nor positive feedback about the product/service offered by you. Detractors are not particularly excited about the product or service offered by the company. They are very likely to spread negative word-of-mouth and damage the company’s reputation. Most likely, they are not likely to make a purchase ever from the company again.

Calculating NPS Score To Determine Your Success Rate

With NPS existing in the market for a past few years, various organizations have come up with their own individual formula or ways to calculate this score. However, the crux of the entire concept still remains the same. From using survey templates, email to telephone and other mediums, calculating this score is not a tough task.

The calculation of NPS can be done using a simple formula that reads:

Percentage of promoters – Percentage of detractors = Net Promoter Score.

For instance, if the percentage of promoters is 30, detractors, 25 and the rest are passives, then the NPS would be 5. However, make sure that the percentage sign is not with the score determined as NPS is a number and not a percentage.

Simple Tips To Improve NPS Score

NPS is an important metric that helps determine your customers’ loyalty towards your brand and how happy they are with your services. It also helps identify ways to improve the brand’s performance as well as ways in which detractors can be reached/ approached.

While NPS of two contact centers is different, a higher NPS indicates better customer service and improved customer loyalty towards the brand. It is certainly good to have a high NPS but attaining it is the real challenge. Some of the common tips that may help improve NPS of a contact center are:

1. Keep Your Employees Informed

Helping employees know about the NPS and the ways in which it affects their performance score is important. Doing so would motivate them to deliver better and help them understand that it is their performance that drives it and not anything else.

2. Identify Your Influencers

For a contact center to thrive, it is best to engage with your brand influencers on social media. Initiate a conversation online and make it visible to the followers of the influencers. This, in turn, would influence the followers to make a purchase from your brand.

3. Mend Your Mistakes

Analyze the feedback received from the detractors and identify the reasons for their dissatisfaction. This would allow you to identify the common flaws and errors in your work and assist in turning those negative experiences into positive.

4. Plan A Follow-Up Survey

After you have calculated your NPS score, it is recommended to create a plan that can help improve your NPS score. Having a plan in place and tracking the growth rate after implementing this plan using another survey can be a great way to improve your NPS score.

Skepticism About Implementing NPS Strategy

While NPS is considered as an important metric to measure customer’s loyalty towards your brand, it is not completely true. NPS cannot measure customer behavior accurately as there are huge variations in the views of different customers. Moreover, there is no possibility to check and identify if the customers who claimed to spread word-of-mouth about the company actually did so.

It is best to implement NPS in the markets with huge competition. The score is based only on the feedback received from the customers. Moreover, the negative word-of-mouth publicity by the non-buyers is completely ignored. Furthermore, a customer rating your services as zero and six are considered to fall under the same category of detractors. While in real life situation, their outlook towards such situations would be far different from one another.

NPS Needs An Additional Management Tool

It is true that the NPS score alone is not enough to manage a huge database. Therefore, using it along with other key metrics is recommended. The ultimate goal of this tool is to promote better customer retention, loyalty, and satisfaction. Therefore, one must focus on delivering a better customer experience, garner positive feedback and in turn, lead to a better management of customer service and delivery.

NPS score

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