Pull your customers heart strings with NPS

Calculating Net Promoter Score (NPS) is a widely used method for gauging customer satisfaction and loyalty. It is a key metric in Customer Success to understand how likely your customers are to recommend your product or service to others. Here's how you can calculate NPS:

1. Conducting the Survey

• Ask your customers a simple question: “On a scale from 0 to 10, how likely are you to recommend our product/service to a friend or colleague?”

• The scale typically ranges from 0 (not at all likely) to 10 (extremely likely).

2. Categorizing the Responses

• Respondents are categorized into three groups based on their rating:

  • Promoters (Score 9-10): These are your most loyal and satisfied customers who are likely to recommend your product.

  • Passives (Score 7-8): Satisfied but indifferent customers who are vulnerable to competitive offerings.

  • Detractors (Score 0-6): Unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

3. Calculating NPS

• Subtract the percentage of Detractors from the percentage of Promoters. Passives count toward the total number of respondents, thus decreasing the percentage of Detractors and Promoters and pushing the Net Promoter Score towards 0.

Formula:

4. Interpreting the Score

• NPS can range from -100 (everyone is a detractor) to 100 (everyone is a promoter). A positive score is generally good, and a score above 50 is excellent.

5. Actionable Insights

• Use the feedback from Detractors to identify areas of improvement.

• Engage with Passives to understand their indifference and turn them into Promoters.

• Leverage Promoters by encouraging them to share their positive experiences.

6. Follow-Up

• Conducting regular NPS surveys and tracking changes over time is crucial for ongoing customer success and improvement strategies.

Conclusion

NPS is a powerful tool for measuring customer loyalty and can provide invaluable insights for customer success strategies. It helps businesses identify areas where they are excelling and areas that need improvement. However, it should be used in conjunction with other metrics and feedback to get a comprehensive view of customer satisfaction.