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Find the best survey software for you!
(Along with a checklist to compare platforms)
Take a peek at our powerful survey features to design surveys that scale discoveries.
Explore Voxco
Need to map Voxco’s features & offerings? We can help!
We’ve been avid users of the Voxco platform now for over 20 years. It gives us the flexibility to routinely enhance our survey toolkit and provides our clients with a more robust dataset and story to tell their clients.
Steve Male
VP Innovation & Strategic Partnerships, The Logit Group
Explore Regional Offices
Free Download: Enhance NPS® Scores using our NPS® Survey Templates
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A net promoter scale can help you figure the customer loyalty. An NPS® is an effective strategy to measure how much, your customers, clients, and employees are satisfied with your company’s service.
The best example of NPS® is when you ask your customers “How likely you are to recommend our service to a friend?” The customers receive a scale of 0-10 ranging from least to most.
After the result from the survey comes back, you can then segment the result into three group promoters, passives and detractors.
The NPS® is crucial for the fact that it gives you an insight into how receptive and satisfied your customers are with your company’s product or service. The customers have the power of making or breaking a company’s success. So, tracking how happy they are can be beneficial to strategize the company’s game plan.
As per the data by Satmetrix NPS® data benchmark there has been a decline in NPS® score, for only 12 out of 23 industries.
Cable and Satellite TV and Internet Service are at the bottom of the list with a score of 7 and 2 respectively. However, it is a temporary spike on the overall performance analysis.
Health Insurance and Smartphones are the only two sectors that witnessed an increase in score.
Department and Specialty Stores, Tablet Computers, and Investments have the highest score in the order of 58, 47, and 45 respectively.
Some other NPS® scores are
NPS® can be low as -100 or high as + 100. So, the question of how to understand how satisfied your customers are and how much you need to improve.
However, the NPS® also heavily depends on the niche. A score of -10 may be higher for some niche or other. However, the score definitely leaves a huge room for improvement.
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Turn detractors to promoters. Increase Customer Loyalty. Get more customer referrals.
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To calculate the obtained NPS® score you can use the following formulas
%of Promoters – % of Detractor =NPS®
There are three categories of customers based on how they rate. These are Promoters, Passives, and Detractors, as mentioned above.
They are customers who love the service or product your company provides. They are of high value because such loyal customers help the company move toward success. These high-ranking customers are also promoting your company in their social circle.
The customers of this segment are comparatively satisfied with your company. They may stay with your company. They may go to whichever company provides better service. It is difficult to turn them into loyal customers but certainly would benefit the company.
These customers are highly unhappy with your company. They do not positively promote your company. They may ruin the reputation of your company and its service by spreading negative reviews to their peers.
No business can expect to have completely satisfied customers. You cannot change the perspective of every individual detractor. Nor can you completely comprehend their point of view. However, NPS® gives you an idea of what you may need to change or improve about your company.
To get a better understanding let’s look at companies with best NPS®
According to the global benchmark with an NPS® range of -100 to +100, a score above 0 is good for any company. It means that you have loyal customers.
– Compare with other companies: For a better awareness about the success of your company’s strategies you may try assessing your competitor’s NPS® and comparing those with your NPS®.
– Compare with the different regions: The scores are also affected by the geographic market. For instance, you may find that customers in your region tend to stay in the mid-section of the scale and not outright go for a high or low score. Customers from another region may stick to the lower end of the scale despite how satisfied they are. NPS® may vary dramatically as it is subjective.
– Use your NPS® to compare: The better way is to thoroughly study your company’s past NPS® record and compare them with the more recent report. If there is a decrease in the score then you can positively identify the issue and prepare for improvement. On the other hand, if the NPS® increases then your company is doing a great job in keeping your customers satisfied.
NPS® is only a means to give you a clear picture of where your company needs improvement. Ultimately what your company needs to do is to analyze and listen to your customer’s feedback. Then to take positive action towards the main goal which is customer service.
Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.
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