Maximize The Value Of NPS Analysis For Your Business

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Maximize The Value Of NPS Analysis For Your Business customer experience optimization
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NPS Analysis is important as it provides you with valuable insights into how customers perceive your business. The NPS data can help you understand how you can drive business growth and improve customer experience. 

In this blog, we’ll explore how to analyze NPS results, their importance, and how to use them to retain customers and expand reach.

What is NPS analysis?

Maximize The Value Of NPS Analysis For Your Business customer experience optimization

Net Promoter Score is a key CX metric that uses customer feedback to measure satisfaction and loyalty. It uses a single question, also known as the “likelihood to recommend” question, to understand the level of satisfaction among customers. 

NPS survey analysis is the step after data collection when you look into customers’ scores to get a view of business health. In this step, you segment customers’ scores into three categories – promoters, passives, and detractors. 

Promoters – Customers who gave a score of 9 or 10. 

Passives – Customers who gave a score of 7 or 8. 

Detractors – Customers who gave a score between 0 to 6. 

Dividing respondents into three categories, you can now analyze overall NPS data. 

How to calculate NPS data?

After you gather the score from an NPS survey, you categorize the respondents into the three customer segments mentioned above. 

Once you have divided all the respondents into three groups, you can use the formula below to calculate your NPS result manually. 

NPS = Promoters % – Detractors %

 Survey software like Voxco also offers you a free NPS calculator. All you need is the percentage of promoters and detractors. You can also use Voxco for NPS score interpretation using the NPS dashboard

What are the types of NPS analysis?

Net Promoter Score survey helps you identify factors that drive customer satisfaction and loyalty. As a closed-ended question, it may not offer deeper insights, but it gives a powerful numerical value that indicates customer loyalty

You can use an open-ended question customized for each segment to gather the reason behind the score. 

Here are three types of NPS analysis based on three different approaches. 

  1. Transactional NPS analysis:

This type of survey helps you capture customers’ feedback after a specific transaction, i.e., purchase, subscription, or customer support interaction. 

Analyzing this data allows you to identify the touchpoints that you need to focus on to improve CX. 

  1. Relationship NPS survey analysis:

Relationship survey helps you measure overall customer satisfaction over time. The analysis of this survey data helps you track changes. It enables you to monitor trends and patterns in customer’s perceptions of your company. 

  1. Competitive NPS analysis:

The aim of this type of data analysis is to compare your company’s NPS score to that of your competitors. It helps you identify where you stand in the competition and how you improve.

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How to conduct NPS analysis?

If you want to leverage NPS survey analysis to its full potential, just writing the single question and sending it is not enough. Here is a six-step guide on how to collect reliable data and conduct analysis in the best way. 

01. Send a survey based on the stage of the customer journey:

Sending an NPS survey to a new customer who hasn’t yet bought any product won’t nurture any value. It’s important to determine the critical touchpoint while sending the survey. 

Above, we have mentioned three types of NPS surveys and the type of data it generates. You can use that as a foundation, or you can also set up a survey based on specific customer behavior. 

Trigger your survey after the customer completes an action on your website or app. 

  • A customer using your platform to create their first video successfully. 
  • A user upgrading their subscription from a free trial to a basic plan. 

Or, send a survey 1 or 2 days after your customer receives the product they ordered from your website/app. 

02. Ask for a reason for the score:

Maximize The Value Of NPS Analysis For Your Business customer experience optimization

Just looking at the number of detractors and promoters won’t give you the whole picture. Similarly, following up later with a detractor or passive won’t inform you of all the positive aspects of your company. 

Add a follow-up question in your NPS survey to gather the reason in real-time. This will allow you to gather positive and negative perceptions of your brand. You can identify what your customers are looking for, where you are missing the point, and what you can improve. 

Use survey software that not only allows you to add an open-ended question but also customize it. Ask different questions based on the three categories. 

This way, you can find out what’s driving customer loyalty so you can capitalize on them. 

03. Segment the respondents:

To conduct a thorough NPS analysis, you need to segment customers further than the general categories. This will help you make your NPS data more actionable. It will also allow you to break down and interpret NPS ratings at a more granular level. 

Segment survey respondents according to demographic data, geography, types of products/services, stage of the customer journey, etc. This will help you draw trends and patterns across a wide range of variables. 

Demographic data: Identifying age, gender, marital status, income, etc., can help you create targeted marketing campaigns. 

Geographical data: You can draw a more accurate picture of customers’ preferences and expectations according to geographical locations. 

Types of products/services: This segment can help you determine which product or service is a recurring name in customer complaints or compliments. 

Stage of the customer journey: You can compare the ratio of promoters and detractors between new and old customers. This can help you determine whether the positive comments are due to longer relationships or brand offerings.

See what you can do with Voxco Online Survey Tools.

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04. Analyze open-ended responses:

Maximize The Value Of NPS Analysis For Your Business customer experience optimization

By conducting an NPS analysis on the follow-up question, you can identify the root causes and also the sentiment attached to the customer experience. 

Use an automated text analysis tool to perform analysis on thousands of customer responses. This can help you identify what customers are most upset about. 

Using text and sentiment analysis, you can understand how the customer feels. It also helps identify the recurring theme and categorize feedback into positive, neutral, and negative sentiments. 

You can learn what drives customers to become detractors or passives. Also, identify how you can turn passives into promoters. 

05. Compare your NPS score with the industry’s benchmark:

Comparing your score with the industry’s benchmark can help in many ways in your Net Promoter Score analysis. 

  • It helps you understand where you stand compared to your competitors in the industry. 
  • You can identify the strength and weaknesses of your company. 
  • Using the NPS reports, you can identify what your company is doing best and use it to capitalize further. 
  • Comparing with industry NPS benchmarks allows you to set realistic goals for your company. 
  • You can also track the progress over time and see how the changes impact your position. 

06. Close the loop with every respondent:

Never leave customer feedback open. It shows that you don’t take notice of their concerns and only want to gather data. 

Close the loop with all the respondents. Leverage a survey software that allows you to trigger a customized email for every respondent right after collecting the data. 

Share the insights across the organization to create a closed-loop NPS program. Make survey respondents feel heard and valued. Communicate with them how you plan to resolve their concerns and engage them in the process. 

These six steps are a good way to start your NPS analysis. These should be a part of the process whether you are a small store owner or a global enterprise. 

What tools should you invest in for NPS survey analysis?

Here are three prominent tools you should invest in when it comes to NPS analysis. 

  1. Survey tools: Use online survey tools that allow you to create surveys, collect and analyze data, and close the loop. 
  2. Data analysis tool: The survey software should allow you to conduct quantitative data analysis. It should enable you to uncover trends, themes, and patterns in the data.
  3. Text analysis: Using text analysis that also offers sentiment analysis can help you interpret open-ended responses. You can uncover the “why” and conduct root-cause analysis.

Don’t miss out on the robust features to create a closed-loop NPS program.

How can you interpret NPS scores?

NPS survey question asks respondents to rate their likelihood of recommendation between a range of 0 to 10. The score can range from – 100 to + 100. A higher score means higher satisfaction and customer loyalty. 

→ Scores above 0 is positive or good NPS score. 

→ Score above 50 indicates you have more promoters. This is an excellent score. 

→ Scores below 0 are negative and mean you have more detractors. 

This is a general NPS score interpretation. To get a detailed idea of where your company stands, you also need to consider the general industry standard.

Why is NPS analysis important?

NPS is not only a strong indicator of customer loyalty but also a predictor of company revenue. It creates a foundation to dig deeper into what drives customer satisfaction. The NPS analysis helps you uncover the reason behind customer dissatisfaction and discover areas of improvement. 

Identify areas of improvement:

Gathering customer feedback, you can uncover valuable insights into areas where you can improve CX. You can prioritize customers’ concerns to prevent future dissatisfaction. 

Measure customer loyalty:

Using a single question, you can learn whether your customers are loyal to your brand or not. It can then help you uncover why they are not loyal, what’s causing dissatisfaction, and how you can boost loyalty. 

Benchmark with competition:

NPS analysis gives you the opportunity to compare your score with competitors in the same industry. It can give you a comprehensive overview of customers’ expectations and market trends. \

Related read: 20 Best NPS® Software & Tools in 2023

Deliver exceptional experience at every stage of the customer lifecycle.

Close the experience gap. Activate promoters.

Wrapping up,

Breaking down NPS data helps you contextualize the score and gain valuable insights. When you mix Net Promoter Scores and open-ended feedback, you gain a critical perception with the help of customers. 

Leverage survey software that allows you to generate dynamic NPS reporting. The tool should enable you to see a score chart, distribution chart, trend chart, and sentiment analysis. It should also help you in reporting NPS data and exporting it in excel for everyone to access.

FAQs

1. How do you analyze an NPS survey?

You can follow the four steps to analyze an NPS survey.

  • Calculate NPS with the formula, NPS = Promoters% – Detractors%. 
  • Analyze open-ended responses to contextualize the score. 
  • Identify trends, themes, and patterns in survey responses. 
  • Compare your score with the industry benchmark.

2. What is a good NPS survey score?

When your score is above 0 (zero), it is considered a good score. When you have a score of 50 or above, it is excellent.

3. What is an NPS survey summary?

NPS summary is an overview of the survey results. It is typically an NPS reporting that includes a breakdown of the responses based on the three categories. It also includes a trend chart, distribution chart, and sentiment analysis.

4. How do I present the NPS survey result?

When reporting NPS results, it is important to keep the audience who will read the report in mind. It’s best to use visual cues when presenting the data. Using charts and graphs will help the audience focus more on actionable insights.

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