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Net Promoter Score
Posted by Jay Farr, Last modified by Jay Farr on 14 May 2015 01:35 PM

 

Net Promoter Score (NPS)

The Net Promoter Score or (NPS) is a management tool to help gauge the "loyalty" factor of your customers to your business.  The primary purpose of the NPS is to evaluate customer loyalty to a brand or company, not to evaluate their satisfaction with a particular product or transaction.  The ability to measure customer loyalty is a more effective methodology to determine the likelihood that the customer will buy again, promote or talk up the company and resist market pressure to defect to a competitor.  When used with other questions including an open ended question for comments (highly recommended) you can better gauge how loyal your customers are.  Increased loyalty leads to higher customer retention rates which in turn yields higher company revenue growth and profits.

How it works:

NPS is based on a direct question "How likely are you to recommend us to your firends and family?"  The image below shows how the question appears in your SurveySquare survey.  This NPS item type uses a set range from 0 to 10 and becomes more useful in analyzing your results when you include other questions (including an open ended comment question) in your survey.  

In SurveySquare, you can create a trigger that can immediately send an email to anyone when you have a low NPS response in your survey (e.g. <7) and/or you can post the response to the ActionTracker and auto assign it to a manager for follow-up.

NPS is grouped into 3 categories.  

  • Promoters = 9 & 10's - these customers are very satisfied with the brand and are more likely to tell others e.g. social media sites like YELP, Angie's List or Facebook
  • Passives - 7 & 8's - these customers are satisfied with your company but are not loyal and will easily switch to your competitors based on promotions they receive.  (Theve responses are ignored in the calculation of the NPS score) 
  • Detractors - 0 thru 6 - the customers are dissatisfied with your brand or company AND they are more likely to tell others including on social media.  They can hurt your brand and impede company revenue growth.

How it's calculated

NPS socre is calculated by taking the total "Promoter" (9's & 10's) responses as a percentage of total responses and subtracts the "Detractor" (0's thru 6's) responses and then shows the value as a number.  The image shown in the next section gives you an example on how the NPS score is calculated.

  • Promoters (9-10) - 6 (9's) + 21 (10's) = 27/34 (34 total responses) = 80%
  • Detractors (0-6) - 2 (3's) + 1 (4) + 2 (6's) = 5/34 = 15%
  • NPS = 65 (80-15)

Interpreting the Scores

  • NPS can be as low as -100 (everybody is a detractor) or as high as +100 (everybody is a promoter).
  • A NPS that is positive (higher than zero) is considered to be good and an NPS of +50 is excellent.

 

On the Analyzer

You can analyze the NPS score on the Analyzer (see below) and using the manage filters you can view by date range and Technician or Location.  

The Trend Chart allows you to view the NPS by day/month/year to see what direction the NPS score is moving.  This is very useful when you are coaching your Tech's to help them get their NPS scores higher.  

 

 


On the Scorecard

The scorecard gives you the ability to view your technicians (or locations) by the NPS across all departments/regions etc. and sort them by the NPS to create a benchmark report.  

The scorecard also gives you the ability to drill down by tech to help analyze and/or prepare coaching examples for your employees.  see Scorecard on how to set it up


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