Improving and Understanding my Net Promoter Score
3 min read
NPS measures the willingness of your customers to recommend your business, products, or services to others based on their own experiences. In theory, your score should enable your business to understand how to improve its customer service.
NPS researchers found a strong positive correlation between NPS and the average three-year growth rate of a company – as Reichheld (creator of the NPS) said, “evangelistic customer loyalty is clearly one of the most important drivers of growth. While it doesn’t guarantee growth, in general, profitable growth can’t be achieved without it.”
A clear strategy around when to ask the NPS rating question is important. At Cantarus, we focus ours on two main areas: project go-live and ongoing satisfaction. The idea is to identify how happy clients are on the delivery of a project and how that compares 6, 12, or even 18 months down the line.
How can I improve my NPS score?
Here are a few quick ideas:
- Set goals: Accept your current score as a starting point and set goals to ensure the next one is higher.
- Educate your team: Ensure everyone in the business is up to speed on NPS and what it means. Understanding your score might provide the motivation needed to improve even further.
- Compare to the competition: See where you score against others in your industry and get better insight into the market.
- Turn Detractors into Promoters: Actively reach out to your Detractors to see what went wrong and if it can be rectified.
- Repeat and re-evaluate: Once you have a plan in place for future improvements, set up a further survey. Analyse and compare your results over time.
Make sure you get the best feedback from your clients
This is an interesting area and is affected by many of the challenges and the psychology of surveys and benchmarking.
One example is, that all other things being equal if the NPS question is part of a larger satisfaction survey, you will receive a higher score if the question is near the top. The reason for this is that if you ask someone to rate you at the end (after you have most likely asked for feedback on how you could improve) they are more likely to identify with these perceived failings and consequently give you a lower score.
Other elements like time of day, day of the week, time of year, etc., will all impact your score, so perhaps avoid bugging someone for feedback first thing on a Monday!
Does NPS have its limitations?
Like everything else, NPS is not a perfect science. One major limitation we have found is how often it is practical to run it. We undertake surveys twice a year and rely on Helpdesk ticket response satisfaction as a key indicator of client satisfaction in between these twice-yearly assessments. This ensures we have the agility to pick up any issues early before they become too deep-rooted.
However, if you want a single, simple metric, NPS is both well-known and easy to benchmark compared to more granular alternatives.
Why is NPS still important and relevant today?
- It focuses on customer satisfaction and allows you to get a better understanding of your customer,
- It helps to identify trends and patterns, and find potential for improvement,
- It can be used to predict business growth,
- It is simple to implement and easy to understand,
- It is easy to benchmark against competitors,
- It enables strategic decisions,
- It can be used as a motivator to improve your service.
Our latest NPS is a whopping +82, and now you know a little more about the process, we're sure you will be able to see why that makes us so proud! Get in touch if you'd like to find out more.