Want to know about NPS and why it’s great for brand reputation? Charlotte Bennett is 8848’s Client Services Director. She’s a specialist in brand reputation management. In this article, she explains what NPS is and why it’s great for measuring your customer satisfaction levels.
Everything you need to know about NPS
I’m now in my third decade of marketing. Age definitely brings experience. What’s more, I also like to think it brings wisdom. If I don’t understand something, I just ask.
With this in mind, do you know what Net Promoter Score is and how it’s great for your customer care programme?
Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction. It was introduced by Fred Reichheld, a business strategist at Bain & Company, in a Harvard Business Review article in 2003. The Net Promoter Score (NPS) is calculated based on responses to a single question: “On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?”
Three categories
Based on their response, customers are divided into three categories:
- Promoters (score 9-10) are loyal and enthusiastic customers who will likely recommend the product/service to others
- Passives (score 7-8) – satisfied but unenthusiastic customers who may not actively recommend the product/service
- Detractors (score 0-6) – unhappy customers who may actively discourage others from using the product/service
To calculate the NPS, you subtract the percentage of detractors from the percentage of promoters. The result is a score that ranges from -100 to 100, with higher scores indicating higher customer satisfaction and loyalty.
How can it help your business?
NPS can help your business in several ways:
- Identifying customer satisfaction: NPS surveys can help you understand how satisfied your customers are with your products or services. By asking customers how likely they are to recommend your business to a friend or colleague, you can gain valuable insights into how they perceive your brand
- Improving customer loyalty: When you measure NPS, you can identify areas where you need to improve your customer experience. Indeed, by making changes to your business based on customer feedback, you can increase customer satisfaction and loyalty
- Setting benchmarks: In addition, NPS can be used as a benchmark for your business, allowing you to compare your performance against competitors or industry standards. Similarly, this can help you identify areas where you need to improve and stay competitive
- Monitoring progress: By regularly measuring NPS, you can monitor your progress over time and see if changes you’ve made have had a positive impact on customer satisfaction and loyalty
- Focusing on customer-centricity: Focusing on NPS can help your business shift towards a customer-centric approach, where the goal is to delight customers and exceed their expectations
How can I help you?
My work in reputation management and customer care spans many years. One of my roles at 8848 is leading a team of highly experienced contact centre specialists who offer clients one of the best services in the region. In addition, one of these services is managing clients’ NPS programmes.
Contact me directly if you would like to talk about your NPS programme or are thinking of introducing NPS to your business.
Email Charlotte.bennett@8848agency.com. LinkedIn: Charlotte Bennett.