Customers are the raison d’être of every company. Attracting them is one of the main objectives within the marketing plan. More frequent than it should be, they are forgotten once they have arrived at the web or online store and bought one of the products or contracted a service.
A company that has satisfied customers knows that it has secured the future. The life cycle of customers should not end once they acquire the product or service, but we must move to another level and start with their loyalty.
Customer loyalty is something that is not usually considered in many marketing strategies, or is it about it in the very long term, and it is something that should not be forgotten. Getting a customer is the result of the set of many actions. You have to take advantage of the fact that you already have your attention so that you become a brand ambassador and continue to trust the company, while recommending it. Therefore, “word of mouth” marketing becomes a key piece that will add results to the overall marketing strategy.
Therefore, knowing the degree of customer satisfaction is essential. Knowing how your experience has been, the pros and cons of your relationship with a product or service, are presented as objectives and that is where the Net Promoter Score plays a fundamental role.
What is the Net Promoter Score?
The Net Promoter Score is an indicator that measures a customer’s satisfaction after having had an experience with a company or service. In addition, the result can help us to know other aspects such as the probability of recommendation or loyalty to the brand of that client.
The creator of this metric so important to measure success and plan for the future of business, is Frederick Reichheld. This American writer and business strategist is known for his reflections on recommendation marketing that we can find, for example, in his most famous book “The Loyalty Effect“.
In any sector, at present, there is fierce competition, although the problem for many companies is not so much their competition, but the experience they offer to their customers. Using this metric as one, but not the only, of the indicators to perform an accurate analysis of the perception of the brand and the relationship of the end customer with it, can improve the strategy and growth of companies.
How is the Net Promoter Score calculated?
The first step to be able to know this indicator is to evaluate the customer experience through, for example, a survey.
The NPS is measured in a table from 1 to 10, categorizing the answers obtained as follows:
- From 1 to 6: detractors
- From 7 to 8: liabilities
- From 9 to 10: promoters
Obviously, all companies want answers to score the highest. It is important to note that there is no ideal NPS, since many factors must be taken into account, and what in one sector can be considered as a terrible result, in another is an excellent result.
If you want to draw a general conclusion and the comparison in the sector, you can use platforms such as Delighted, where by introducing the NPS of the business you can know the average of the sector.
The Net Promoter Score formula
After analyzing all the answers, that information is used to solve the following formula:
Promoters – Detractors = NPS
NPS Surveys. Features.
When it comes to extracting the data to be able to draw conclusions and determine what the Net Promoter Score of a business is, one of the most used resources are surveys.
The types of frequently asked questions in this type of NPS surveys are, for example:
- Would you recommend this product/service to a friend?
- How would you rate our product?
- How has your shopping experience been?
- Has it met your expectations?
When preparing an NPS survey, it is important to consider its distribution. In this type of survey, there is a difference between two parts: the evaluation question and an open question, with a free answer, in which users can leave their comments.
In addition, two types of NPS surveys can be distinguished, relational and transactional (tNPS).
Relational NPS surveys are those surveys that measure product loyalty by measuring the overall experience. On the other hand, NPS TRANSACTIONAL surveys are those that ask for an opinion linked to a specific moment: purchase, delivery service, post-purchase.
The Net Promoter Score measures customer satisfaction, but it is not the only indicator that can be used. In addition, in business analysis, knowing this data has to serve as a starting point to evaluate and improve other aspects such as: processes, services, products, user experience, content, etc. Taking an interest in customers provides very valuable information for the growth of a business. Taking care of them is the key to maintaining a business project for a long time.