Do you know the Net Promoter Score? Get to know this customer satisfaction survey model and how it can help your business.

All companies aim at customer satisfaction. But in the quest for growth, the quality of care or service provided can often suffer from a drop in quality. How is your customer's level of satisfaction?

Discover everything you need to know about NPS and how to calculate your customer satisfaction level!

NPS - What does the acronym mean?

NPS stands for Net Promoter Score, an English term for a methodology used to measure the degree of customer satisfaction. A simple but highly efficient feature. The NPS calculation can assist you in identifying problems that may compromise your business.

The calculation of NPS does not depend on the size of operations, market size and or the number of employees in your company, so it is beneficial for companies of any sector and size.

The Net Promoter Score emerged in 2003, with Fred Reichheld, Consultant at Bain & Company, at Harvard Business Review after the publication of an article called “The number you need to grow”, Fred presents his findings, which were later explained in more detail in his book “The definitive question”.

The Ultimate Question 2.0 

Suitable for managers who deal with product quality and / or service, the book addresses how to ensure the loyalty of its customers based on this methodology, the NPS.

What are the advantages of using NPS?

The NPS - Net Promoter Score methodology gained great prominence, for when compared to other satisfaction surveys.

We can highlight the following main points:

Ease of use

The NPS can be easily used by any company, after implementing the company can monitor closely and at all times how is the satisfaction of its customers. Having a reference number, and identifying the necessary improvements, it is easier to correct and raise the NPS note.

Simple and for everyone

For the company and / or managers, an evaluation of the results happens in a simple way, with a number serving as a guide, you can use forms and spreadsheets to compile everything, and or even tools made for that, extracting valuable insights.

For customers, it is just a single question to be answered, which takes just a few minutes and does not generate any wear and tear.

Agility to act

The main objective of the NPS is to improve the company's performance using the feedback collected. Thanks to the simplicity of implementation and ease of collecting the results (both quantitative and qualitative), it is possible to have more agility in handling cases.

Less chance of manipulation

Whoever never heard the phrase, "all research is manipulable".

The fact is that because it is simple and it is only a question, unique and objective, the consumer ends up not being influenced by the order in which the questions appear. In addition to good practices, which guarantee the suitability of responses.

Easily adaptable

The methodology can be adapted to the most different situations and to the most different products and or services. Like for example:

"How likely are you to refer a product X to a friend or colleague?"

“On a scale of 0 to 10, how much would you recommend Company X to a friend or colleague”

"Would you recommend our services to a friend and / or colleague?"

Benchmark

Another advantage of NPS is that you can find out how  you are in relation to the market by comparing your grade.

The average of the grades can vary according to the branch of activity of the company, but we will establish a following rating scale in general.

Excellent - NPS between 75 and 100

Very good - NPS between 50 and 74

Reasonable - NPS between 0 and 49

Bad - NPS between -100 and -1

How does NPS work in practice?

"On a scale of 0 to 10, how much would you recommend Company X to a friend or colleague?"

This single question allows you to quickly measure the customer's feeling towards the company, there is no greater satisfaction for the company than to be indicated.

Once the customer indicates your company, he trusts the structure and the way you deliver the product or service.

How does customer classification work?

Customers are classified into 3 distinct groups, according to their responses:

1. Promoters (grade 9 or 10)

Promoters really see value in their product or service and like to use it. Being loyal customers, they easily refer your company to friends and colleagues.

This customer profile interacts more actively with the company, whether through feedback, suggestions and participation in research. It is worth remembering that maintaining a good relationship with these customers is mega important, as according to a survey 20 to 50% of the companies' revenue comes from indication.

2. Neutral (grade 7 or 8)

They are passive and momentarily disclosed customers, but Loyal. Little or nothing engaged with the company, they do not make recommendations from it, or do with some reservations.

In addition, if there is a more attractive offer, they don't mind migrating to a competitor.

3. Detractors (score from 0 to 6)

Customers dissatisfied with the product or service feel that purchasing it has not solved their situation, and has even brought more headaches.

In addition to frequently causing discomfort and friction with their employees, they are twice as costly as they require more support and attention.

Whenever a profile of this type and client appears, it is necessary to identify their dissatisfactions, and correct them as soon as possible. However, there are naturally dissatisfied customers and in this case, the best thing to do is to avoid attracting this type of profile and or dismissing the customer.

Remember: Your company is not for everyone, just like not everyone is for your company!

According to studies, 40 to 50% of customers chosen in this profile tend to cancel a subscription to their service within 90 days. Curious right!

How to calculate the Net Promoter Score?


The calculation of the NPS is simple, just take the percentage of promoting customers and subtract from them the percentage of detrimental customers. For the calculation, we must disregard passive assessments.

The result is a number that can range from -100 to 100.

% PROMOTING CLIENTS -% DETRACTING CLIENTS = NPS

Let's take the example:

We had 10 responses, 6 promoters, 2 passive and 2 detractors.

For the calculation, we disregard the 2 liabilities, leaving the 6 promoters and 2 detractors.

The 6 promoters represent 60% of the response, or 0.6.

The 2 detractors represent 20% of the response, or 0.2.

For the account, we have 0.6 - 0.2 = 0.4

Turning to%, we have a result of 40, which would be the NPS score.

But calm down, to make this account even easier, we created a special NPS calculator, check the link below:


It is essential to follow this metric to build a successful business. If your grade is low, it may be a reflection of a failure in the planning and or execution of your product \ service. Once your grade is identified, you can work on the points of attention given and thus improve your grade, resulting in more success with your client and a higher referral rate.

A valid sample must be made up of ⅕ of its base. This regardless of the size of your business. Avoid sending the NPS questionnaire less than 90 days apart.

Don't forget to share your NPS score with the company in general. It is important that everyone has customer-focused actions. Always be open to suggestions, your customer service team can help and a lot in this improvement, since they are always in contact with customers.

Detractor x Promoter

The search for promoter clients is still obtained when we compare them with Detractors: See just some interesting points:

Retention rate

Promoting customers tend to change companies less, it is difficult for them to migrate to the competitor or look for new solutions.

The detrimental customers, in addition to sparing no effort to migrate to a competitor, can still simply choose to no longer have their products and services

Price

Promoters are less sensitive to price changes, as this is not the main factor for their choice, they see much more value in their service / product than specifically or its cost.

Repurchase and Upgrade Plan

Promoters are more likely to increase the plan and / or increase the recurrence in which they buy their products, as they trust the services provided and have a high level of engagement with their business.

Cost reduction

The promoters have a lower cost for the company, even if indirectly, as they make less use of support and aptitude less training.

Leaving financial costs aside, Detractors can also cause mental strain and stress in service time.

A satisfied customer tends to recommend your company to a friend or colleague, generating new customers. Unlike detractors, who tend to defame it much harder.

When sending an NPS to the customer, worry about 3 things:

The customer should never be left unanswered

Remember, he is contributing research, and it is very important to you. When you do not respond, he does not feel unmotivated to respond and will still have a feeling that his voice is not important.

Which brings us to the second point.

The Client must know that their feedback is important

When asking a customer to answer the questionnaire, let them know how powerful their feedback is. Don't forget to train your employees to not manipulate the results.

Also, let them know about improvements made based on the responses.

Actions must be withdrawn based on feedbacks

Feedback is essential for the company to have an idea of ​​what can or should be improved.

These actions can be individual, that is, the company that solves the situation of a specific customer, or collective, to carry out the improvement of a product or service.

Let's take the example:

An airline, when asked for the NPS questionnaire, identified that the vast majority of complaints were due to the little space between the seats.

Knowing this, she evaluated how she could expand these spaces and thus improve her services and customer satisfaction. By removing only a few seats, it could increase the space between the seats, which would make the customer happy, but thinking financially, this would result in fewer places to sell and less money. But, in a macro view, the company saw that after these changes, it could increase its average ticket that would cover these costs.

In a simple way, whether for the macro or micro, be sure to follow the following steps.

I have my NPS score, now what?


As we already mentioned above, it is very important not to leave the customer unanswered, so we have separated some tips that can help you deal with customers and their responses.

Promoters

Remember to thank them, after all they are expressing satisfaction with your services or products, and this should be valued.

Encourage referral, they are willing to share your products and or services, make it easy.

Benefits Grant. Think of simple things like t-shirts, stickers, a bonus, discounts or anything else, but make sure it is useful. The point is to show that you care about them too and how important they are.

Liabilities and detractors

With passive customers, a second question is worth asking. What can we do to improve our product or service to earn a 10?

Find out information about what may have happened so that he is not satisfied.

For detractors, it is worth seeking information on why such discontent. Get in touch as soon as possible. Here your attention should be more effective.

If the customer signals a problem, he at least expects it to be resolved as soon as possible. The longer your company takes to get in touch, the less important it is. Not to mention that he will have more time to collect negative experiences.

Sorry! Apologizing to the client does not necessarily mean that you are at fault, or assuming major failures. When you apologize, you send a message: I understand you and I will look for ways to improve my product or service, because you are important.

Be willing to improve, make a commitment and set a time limit to correct the situation.

There is a premise that is very valid: The problem is not having problems, but how companies solve them.

"Actions enchant"

And now? Are you ready to apply the NPS and find out the level of satisfaction of your customers? Download, for free, a satisfaction survey model that we developed for you!

It is important to put NPS into action and extract the valuable information it provides. NPS reports must be shared internally with product, development, sales and marketing teams for decision making. Analyze what has worked on your roadmap to satisfy customers and what hasn’t worked so far. NPS can be a great sales tool.

An extremely useful tool for making decisions and building relationships with your customers. Keeping in touch with users and making sure you’re concerned about their success helps keep them loyal to your business. Analyzing feedback helps your team make decisions that deliver results. The NPS can be your guide to all of this.