…concentrate on those who don’t!
In the world of business, it is not just enough to be liked. To be successful, you need to be able to keep those who love you. You also want those who love you to tell everyone about you. As Walt Disney famously said, “Do what you do so well that they will want to see it again and bring their friends”.
Walt Disney understood the value of customers’ recommendations to his company. It is obvious that the more people shout about how good you are, the more growth you’ll see.
The flip side is to win over those who hate you and find out where you went wrong. To be able to get a view of how your business is seen by your customers, and NPS is a great starting point.
A Net Promoter Score is a customer experience metric that is used to measure the loyalty of customers to a company. First developed back in 2003, NPS is now considered the gold standard measurement tool for customer experience. It is designed to help companies track and increase the likelihood of customers recommending their organisation or business.
NPS is measured on a scale of 11 points between 0 and 11 in answer to a question along the lines of ‘How likely are you to recommend [company, brand or product] to a friend or relative?’
The 0 point on the scale represents Not Likely At All, while 10 indicates someone would be Extremely Likely to recommend someone.
Each of the responses are then grouped with those in the 0-6 bracket deemed ‘Detractors’, those rating it 7 and 8 are ‘Passive’ and those scoring 9 and 10 are ‘Promoters’, those who simply cannot get enough of you and are likely to tell their friends and family.
Every customer matters, but when measuring how likely people are to recommend your brand, it’s those who may detract or promote the brand that matter the most. Those who “just get it” like the ‘Passives’, have very little to offer that will bring about meaningful change where required; those in the Detractor and Promoter camps that have the most influence on your business.
Now to work out your NPS. NPS results are within the range of -100 to +100. Here is how to work out your score…
NPS = % Promoters – % Detractors
So for example if you had 50% Promoters, 20% Detractors and 30% Passives your result would be:
NPS = 30
We’re so used to thinking of things in percentage terms, that people often consider an NPS that isn’t near +100 means there is something seriously wrong, but this couldn’t be further from the truth. Remember we’re ignoring passives, where most people sit in life, and taking the detractors away from promoters, so unless you make everyone unbelievably happy all of the time, and no brand does, you can’t ever really hope to achieve +100.
In fact, 0 would be “you’re ok”, but ideally most of us would want to be better than ‘ok’, so in my opinion, a score of 0-25 would be ‘good’, 25-50 ‘great’ and 50+ would be exceptional; even Apple, one of the largest brands in the world only have an NPS of 47, with others like Facebook, Disney and McDonalds all scoring in the negative.
Whilst a useful metric and KPI, the number itself does not bring about change. What you have to do is find out what caused the Detractors to be unhappy and do less of that, and why the Promoters were so happy and do more of that. To find this out you need to follow the scoring question with an open-ended question to allow them to explain their reasoning; simply ask them ‘Why?’
The next step is to follow up with those Detractors and Promoters and contact them directly. Reaching out to those in the Detractor group is a good way to show you are listening and correcting the actions that led to the mistakes. People appreciate that company responding to their criticism in a positive way. It could also lead to meaningful change, e.g. replacing your courier who has been delivering badly damaged parcels. In the same way, talking to those in the Promoter group to find out more about why they enjoyed their experience can ensure you keep and even enhance that aspect, e.g. championing your customer service.
Continually examining and analysing the responses in both the Detractor and Promoter groups will show any trends or changes in the NPS score. This could highlight changes relating to a time of year, a sector of the company or if there are changes made to parts of the customer journey. Reviewing and prioritising areas to take action on should be a continuous part of monitoring your NPS and help you maintain the customer experience.
NPS should be a key part of any B2C marketing strategy to ensure your customers get the best experience they can. By improving the faults and listening to those who have had a bad experience and continuing to do those aspects customers love, you are setting up a procedure to help your business improve and grow.
Want to know more?
If you’d like to see other big brand NPS scores visit Customer Guru and for an animated video explaining from TemKin Group that sums NPS up perfectly, I strongly recommend you check the following video out.
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