NPS consumer loyalty index. What allows you to measure NPS. Who invented NPS
Net Promoter Score) - an index for determining consumer commitment to a product or company (readiness to recommend index), used to assess readiness for repeat purchases.Measuring NPS involves several steps.
The founder of the method is considered to be Frederick Reichheld, who first announced it in an article The One Number You Need to Grow, published in Harvard Business Review in December 2003. In 2006, he released a book called "The Ultimate Question: Driving Good Profits and True Growth", which Russian market known as “The Book of Real Profits and Real Growth” (2007). In it, he continued his thoughts on the topic of loyalty, profitability and company growth.
In 2001, Reichheld conducted a study of more than 400 American companies, where the main task was to measure the impact of customer loyalty (measured by NPS) on its growth rate. The main result was the conclusion that average The NPS for the market in the industries was 16%, but for companies such as eBay and Amazon the NPS was 75%. Reichheld does not say that communication is present everywhere; it is completely absent in monopolistic markets. However, industries such as airline passenger transport, insurance and car rental have become clear examples of interconnection. These companies are service companies, where customer satisfaction and loyalty depend on the level of customer service.
Many companies have become adherents of this technology, including GE, Allianz, P&G, Intuit, Apple, American Express, Philips, eBay, Amazon, etc. In the Russian market, this technology is used by such companies as BestDoctor, Rostelecom, Ozon, Insurance Group AlfaStrakhovanie, Red Cube, Megafon North-West, MTS, 1C-Bitrix, ROSNO, MIAN, TELE2, Home Credit Bank, QIWI and others.
Research on the Russian marketResearch using such technology is carried out by many research agencies in Russia and abroad.
Assessing customer loyalty using the NPS index can be used in various industries: IT, financial services, construction, etc. In Russia, banks and insurance companies actively use the NPS index in their work.
IN banking sector This approach to assessing loyalty is particularly common. [ ] Some companies carry out the measurements themselves, for example using a feedback tablet. There are organizations that prefer to hire independent experts to conduct the assessment. NPS for the banking market can be calculated both for the main bank (as determined by the clients themselves) and for all banks whose services are used by consumers. [ ] In 2016, a survey of users of Russian banks was conducted in Russia, which showed that for the main bank the average NPS value was 44 points, and for all banks used by Russian clients, the NPS value was significantly lower - 30 points (the survey was conducted by the NAFI Analytical Center) . [
A lot has been written about calculating NPS. It may be difficult to bring something new into these stories, but I’ll try anyway. Firstly, I suggest you watch the presentation on this topic at the end of the post (well, that’s it, the formula and a little about NPS - after all, it’s easier to look at pictures than to read text), and secondly, reading a bunch of all sorts of materials about NPS, I I realized that the details that later turn out to be needed in practice cannot be found during the day.
NPS - net promoter score blah blah blah... It's written anywhere! I will say this: if you want to know how much your customers love you, calculate your NPS! This is perhaps the most important thing; hardly anyone needs memorized definitions of “a way to determine consumer loyalty...”.
It would seem that nothing could be simpler. Following this method, you ask your customers the question: “How willing are you to recommend our company to your friends?” Depending on the answer, you divide your entire audience into three groups:
- “critics” are people who will never recommend you to their friends at any cost. They may lower your NPS, but they play a very important role in measuring it, I’ll explain which one later;
- “neutrals” are clients who are either “random” for you or are simply indifferent to your brand;
- “promoters” - these clients will be happy to recommend you to friends, and, therefore, will ensure a stable influx of new customers.
So, let's say you got these numbers, what next? And then we calculate NPS using the formula: (number of promoters - number of critics) x 100% = NPS.
When conducting a survey, you need to take into account some nuances. We must not forget that the survey must last long enough for the sample to be representative. As practice shows, until the percentage of clients surveyed reaches 20%, the results can be deceptive.
If you conduct a survey using e-mail, the response rate should be at least 30-40%. Moreover, what makes me doubtful is the fact that your letters are, in principle, opened by more or less loyal clients, which means you risk underestimating the number of “critics.” What to do about it? Perhaps it is advisable to add other channels to e-mail newsletters.
It is best for respondents' answers to be recorded on paper or in electronic form, so you can take a closer look at each of them. It's great if respondents leave you their contact information so you can get more common responses if you're interested.
How you can collect responses:
- if you are, for example, a cafe, you probably have a wi-fi page, conduct a survey there;
- you can use your subscriber base and contact them by e-mail;
- you can post a survey form on your website;
- You can collect responses offline if offline contacts with clients are a common occurrence in your company.
In any case, use every opportunity to get the most accurate picture.
This is where some kind of failure begins. You can find how to calculate NPS anywhere, but how to interpret the results and what to pay attention to is not written anywhere (I mean, almost anywhere). but that’s why this blog exists, to tell such important information.
So, in interpreting the results, the obtained figure is not the most important indicator. It is very important to receive feedback from your “critics”. Thanks to their opinion, you will be able to improve your service and increase the loyalty of your customers; based on it, you will be able to make the necessary changes, find out weaknesses your company. In short, they give you direction so you know which way to go to become truly customer-centric. Don’t hesitate to analyze your critics’ profiles, and if they also leave their contact information, be sure to get in touch to find out as much information as possible! If you can turn “critics” into “promoters,” they will become true advocates for your brand and your most loyal customers.
It would seem that numbers could be more specific, but when looking at NPS, you realize that numbers are very relative. Let's say you find that your company's NPS is 53%, but it is not clear whether this is good or bad. Let's give some examples? Companies with the highest NPS in America* have an NPS level of 70-85%. For example, the NPS of amazon.com and Apple are 70% and 72%, respectively; and banking direction financial company USAA (unlike Amazon and Apple, it is not well-known in Russia) has an NPS of as much as 87%. I found an interesting statistic that compares the average NPS score in the entire industry and the NPS level of the NPS leader in that industry (sorry for repeating this acronym so often).
So, American companies.
Of course, 70-85% is a very high NPS, but, as we see, it still depends on the industry. However, this does not mean that we should not strive to catch up with companies that have won the maximum level of customer trust.
What is also important in measuring NPS is regularity. By tracking this indicator over time, you will be able to evaluate the quality of your work on loyalty, and whether your efforts are justified. Again, it’s difficult to say what the frequency should be, it depends on the industry in which you work, on the frequency of interactions between your customers and your company, because people go to cafes more often than they buy sofas, right?
In order to understand how effectively a company satisfies the needs of its customers, there are a number of marketing methods, one of which is the calculation of the customer loyalty index, or NPS (Net Promoter Score). What is the customer loyalty index? How, using the NPS value, to improve the performance of your company and increase its attractiveness to buyers, as well as how this value affects the financial performance of the organization - we will talk about all this in our article.
You will learn:
- How is the concept of NPS (customer loyalty index) interpreted?
- What are the advantages and disadvantages of the loyalty index? NPS clients.
- How a customer loyalty index can improve a company's performance.
- How is NPS customer loyalty index determined?
- How to implement a customer loyalty index into a company's work.
- What factors influence NPS indicators.
- How to increase and maintain your customer loyalty index.
- How to establish communication with members of the customer loyalty index.
- What difficulties can you encounter when implementing a customer loyalty index?
NPS, or Net Promoter Score, is an index that allows the head of a company to assess the level of customer loyalty. By tracking changes in this indicator, the manager receives a convenient tool, thanks to which it is easy to identify shortcomings in the operation of the enterprise and eliminate them, thereby increasing the efficiency of the staff and the organization as a whole. NPS allows you to competently build a policy for relationships with customers.
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Calculating the customer loyalty index is very simple. It is generally accepted that a company’s income is directly related to the NPS value: the higher the index, the higher the growth rate of the company and its profits. A high NPS index indicates the stable operation of the enterprise.
Customer loyalty consists of the following indicators:
- repeat purchases;
- positive feedback about the purchase made or services provided;
- recommendations given by customers and clients to their friends, acquaintances and colleagues;
- consent to purchase not only the product, but also related products and accessories, ordering additional services, using an optional service provided by the company, purchasing an extended warranty for the product.
Russian and foreign experts highly valued the NPS customer loyalty index as one of the fairest tools characterizing the company’s activities.
The concept of NPS was originally published as a study in 2003 in Harvard Business Review under the title “The One Number You Need to Grow.” The author of the Net Promoter Score concept was Fred Reichheld from Bain & Company Satmetrix.
Believing that standard studies were too long and complex, Fred suggested asking just one question to determine the customer loyalty index: “Are you ready, after making a purchase or receiving a service, to recommend our company to your friends and acquaintances?”
The NPS customer loyalty index has gone through several stages of development since 2003, the system has evolved as follows:
- 2003 - after the publication of an article by Fred Reichheld, the NPS system is increasingly used by various companies and organizations.
- 2006 - outstanding global companies such as Siemens, Apple, Philips introduce the NPS measurement system.
- 2011 – technology for assessing a company’s rating and customer loyalty index moves from research to the category of management systems. Enterprises are beginning to actively implement the methodology and adjust their activities in relation to the consumer loyalty index, which allows them to identify shortcomings in their work and optimize business processes, increasing profits.
- 2016 - the NPS system becomes the main indicator to determine how successful a company is with customers. Based on NPS, enterprise policies focused on working with clients are built.
The NPS determination system has a number of advantages.
Due to the fact that the NPS system is based on just one elementary question, it does not require complex analysis of the data obtained, as a result of which the customer loyalty index is built on the principles of simple understanding and application of the results obtained.
The high speed and simplicity of surveys is due to the fact that when studying the loyalty index, the questions asked are short, clear, and imply the same answers.
By identifying NPS, it is possible to establish a quality relationship with clients feedback, understand their assessment of the company's performance.
When analyzing the NPS rating, it becomes possible to superimpose response statistics on the demographic and social indicators of the audience, thereby obtaining the opportunity to conduct an analysis of various groups of service consumers and goods buyers and find out why certain social groups evaluate the company's performance positively or negatively.
When conducting a survey, high-quality feedback is established with customers, thanks to which the company manager has the opportunity to quickly clarify or revise sales plans and mechanisms.
A survey can show what customers are unhappy with when purchasing goods or services and prevent further customer churn.
Any activity must have a purpose. A survey and identification of the NPS customer loyalty index will help the manager to set it correctly in front of his company. In addition, this research allows you to more accurately motivate employees by explaining to them their current tasks, as well as the common goal that the company strives for. This will increase staff productivity and improve the performance of the entire enterprise.
A company that conducts an NPS survey gains a unique advantage over its competitors who do not use such surveys. When identifying a customer loyalty index, an enterprise receives information through feedback about the mistakes of its employees and even managers - consumer reviews allow as soon as possible analyze and eliminate shortcomings in the work.
Almost any company can conduct such a study of customer loyalty, because it does not need to resort to the services of scientific centers and hire experts, it is enough to carry out a simple survey of your clients by asking them simple questions.
But, despite the availability and effectiveness of determining NPS (customer loyalty index), the method also has disadvantages, the main of which are experts in the field marketing research They consider it one-sided. When implementing the method, answers to questions are received both from supporters of the company who have a positive attitude towards it, and from critics who are not satisfied with something, but these are not all the company’s customers; most consumers are neutral. Therefore, the customer loyalty index reflects only the opinion of the most active part of customers. In addition, experts recommend refraining from using only one customer loyalty index and, when developing important marketing decisions and business management tools, still resort to deeper and larger-scale research of the market, the company itself, and objectively evaluate competitors’ data.
Calculation of customer loyalty index indicators must be carried out at regular intervals; this will make it possible to formulate company policy, focusing on changes in the NPS index, and identify factors that positively or negatively affect the company’s efficiency and its profit.
What company indicators will NPS help improve?A high customer loyalty index characterizes a company as a market leader, which owns a significant share of customers, thus NPS is one of the main indicators showing the growth of an enterprise. As a rule, about 65 percent of the company’s customers have already been formed; attracting new ones is a difficult task. Often, analysis of the customer loyalty index allows not only to expand the audience of consumers of goods and services, but also gives the company serious tools for retaining existing customers. Also, data from the customer loyalty index can be used to develop a method that allows turning the company’s existing growth at the time of research into sustainable development.
The customer loyalty index can be used in prioritizing the company’s product base, since NPS allows you to understand which products and services are used most in demand from consumers, thanks to this it is possible to quickly change the sales policy.
Verizon research has shown that more than 8 out of 10 new company customers learn about a brand from such a simple source of information as word of mouth. The NPS rating is directly related to the customer's opinion, so if it is generally positive, then they are likely to recommend your business to their friends and acquaintances. Accordingly, with a high customer loyalty index, company managers will not need to spend huge amounts of money on marketing campaigns and promotion of goods and services in the markets, since a satisfied consumer himself will become a carrier of information about the manufacturer and will advertise it to his friends.
With the help of NPS, company managers can measure the emotional mood and opinions of customers, and then organize the work of staff in such a way as to most effectively achieve the goal set for the organization, which, in the end, most often is meeting the needs of people and making a profit.
Also, the customer loyalty index, together with other research tools, allows us to predict customer behavior and even shape it in the most beneficial to the company form, that is, to create so-called behavioral patterns.
NPS allows you not only to assess customer loyalty, but also to conduct research among company employees, find out how satisfied they are with working in the company, their wages, form a new one based on this indicator corporate culture and find out how staff react to its change.
NPS values can serve as the only index on which to rely when assessing customer satisfaction. However, it is necessary to regularly conduct this research and compare the company’s financial indicators with the NPS index, which will make it possible to predict customer behavior in the long term, as well as evaluate possible risks for the company. For example, if, while profits are growing, the NPS indicator drops, the head of the company should think about making adjustments long-term policy and development, since income can increase by inertia, while a decrease in the customer loyalty index indicates the necessary changes before profits begin to decrease. Thus, when correlating financial indicators company and the consumer loyalty index can be understood at an early stage and a drop in sales can be prevented, even though the company’s indicators are current moment grow.
How to determine NPS customer loyalty index
The NPS determination system consists of several stages. Immediately after purchasing a product or receiving a service, the client is asked the following question: “What is the likelihood that you will recommend our company to your friends, acquaintances, relatives or colleagues?” The answer to this question is assessed on a ten-point scale. Zero on this scale means the client’s categorical refusal to recommend the company, 10 points means a sincere desire to recommend the company to his friends. As a result, all buyers who participated in the survey are divided into three groups.
The final result of the study is the calculation of the customer loyalty index, which is determined by the following formula:
For example, a company collected responses from 100 customers during a survey.
5 reviews – from critics who gave 0 – 6 points.
10 – from neutrals who rated the company's work at 7-8 points.
So, from 85 we subtract 5, we get 80, divide by 100, get 0.8 and multiply by 100, as a result we have a customer loyalty index of 80.
According to this formula, the index can vary from minus 100 points to plus 100. In the first case, all customers did not like the company’s work, they are all critics (-100 points), in the second case, all customers assessed the company positively and they are all promoters (+ 100 points), ready to recommend the brand to their friends.
Depending on the score the person gave, you can ask additional questions. If the client rated the product highly, you can ask him what exactly he liked, but if the scores are low, then the question is asked what was not satisfactory, what needs to be improved in the company’s work.
Based on the answers to additional questions, conclusions can be drawn about the weak and strengths in the activities of an enterprise, focusing on the analysis of this data, it is possible to change the company's policy, apply other marketing tools, improve interaction with customers, and also provide a service that is more convenient for the buyer.
The practitioner tells
NPS is a simple customer loyalty toolMaria Turcan,
manager of the company "Umnitsa", Chelyabinsk
More than half of our company's sales come from regular customers, so we made a key bet on maintaining their loyalty. Having abandoned complex marketing market research, we came to simple method, which allows you to evaluate customer loyalty and, based on this index, build a long-term strategy for cooperation with your customers. When selling a product, we always conduct a survey of consumers, regardless of the amount and volume of purchase, and invite them to evaluate the work of our company using a ten-point system.
Next, we collect the results, calculate the customer loyalty index, and based on it we plan our activities, of course, focusing on other marketing research. But at the same time, the NPS index is very convenient, as it allows simplest form evaluate customer satisfaction with our products and the work of our company in general. The study itself is included in marketing plan development. You can compare the NPS index both with your own indicators for previous periods and with data from competing companies. We also not only research the opinions of our customers, but also have introduced several different bonus programs, thanks to which our consumers can receive bonuses when purchasing goods. We also abandoned campaigns to provide our customers with discounts on goods; instead, we bonus programs flexible and convenient, created a virtual club of loyal customers, providing them with additional services.
How to implement NPS customer loyalty indexCompanies can determine the customer loyalty index in various ways. For example, many enterprises that have developed network branches install electronic devices at their points of sale that allow a person to evaluate the company’s work. For surveys, software products are used that display answer options on the screen and store the results of customer surveys in special databases.
Financial organizations use paper cards, often in the form of emoticons, to calculate the customer loyalty index. Depending on satisfaction with the service, the client can choose a green, yellow or red smiley and put it in a special basket. Green means complete satisfaction with the service provided, yellow means a neutral attitude, red means the client evaluates the service negatively.
Online stores do it even simpler by placing simple voting plugins on their website. But it is worth considering the peculiarity of collecting information on sites on the Internet: surveys should be unobtrusive and not take a long time from the user.
You can also collect information to form a customer loyalty index through phone calls and SMS mailings. Most often, after purchasing a product, a call center operator calls a person and asks a question about the quality of service and satisfaction with the purchased product and service.
The disadvantage of remote methods of collecting information is that a dissatisfied client simply will not answer the letter, will reject the operator’s call and will not express his negative opinion about the product or service. Thus, a person will remain dissatisfied, but will not be included in the statistics, which will distort the real state of the NPS index, and this may lead to erroneous marketing moves on the part of company management.
What affects NPS indicatorsDetermining significant factors using only one customer loyalty index is an extremely wrong decision, since with an NPS value of 30 points, the store sports equipment may be objectively the worst in its field, and with almost the same indicator, for example, 35 points, an operator providing access to the Internet may have 95 percent of the market in a certain city. It seems that the customer loyalty index is almost equal, but one company is an outsider, and the second, on the contrary, occupies almost the entire market.
What objective factors influence NPS assessment? How can you tell if your NPS is good or if you need to work on improving it?
In total, there are two main factors influencing the customer loyalty index.
The more competitive certain markets are, the more normal the average NPS level is. For example, average NPS values characterize such areas as banking, finance, insurance, and medical. If a company produces some complex electronic equipment, the market of which is not as saturated as, for example, the market for paid medical services, then the NPS index here should be above average, because the competition is lower.
Average NPS score for different business areas. Banking – 0, auto insurance – 22, healthcare – 27, airlines – 36, travel – 38, hotels – 43, eCommerce – 45, Internet services – 48.
Customer tolerance has a significant impact on the loyalty index. Often people are extremely straightforward in their statements about goods and services.
How to increase and maintain a high level of customer loyalty indexIn the process of activity, companies need not only to conduct customer loyalty research, but also to constantly maintain the NPS level. This requires a quick response from management to information received about errors in the work of personnel. You also need to identify shortcomings in real time and try to create an ideal system of interaction with customers. Thanks to constant checks of activity using checklists, sellers become professionals in their field, which allows them to structure work with consumers in such a way that they are satisfied with both the service and the product itself. Every customer who is satisfied after purchasing a product is likely to use the company’s services again and will recommend the company to their friends. The more satisfied customers there are, the higher the number of promoters will be and the longer the NPS rating will remain high.
Application of new, modern innovative technologies allows companies to improve sales processes and eliminate violations, which, in turn, has a positive effect on the customer loyalty index and can even increase it.
When collecting information using electronic devices, various additional questions may be displayed on the screen, depending on the assessment. For example, if a person was satisfied with the purchase and is a promoter, after he gave a rating of 10 points, you can display the following question on the tablet screen: “What did you especially like about our store?”
If a person gives a low score, then additionally, for example, the following message can be displayed on the screen: “What would you improve in the work of our store?” If the main question when researching the customer loyalty index requires answers in points, then all additional questions should contain answers according to pre-prepared text lists.
All collected information on the customer loyalty index immediately goes from electronic devices to a common database. The advantage of this method is that you can evaluate both one individual store and obtain general data, thus generating a report both for one point of sale and for the activities of the entire chain of stores as a whole.
Also, with this research method, reports are generated in real time, which allows for an instant assessment of the company’s activities and timely adjustments to it. For example, having received data for two nearby stores, you can analyze why the index is higher in one of them and lower in the other, thereby comparing other indicators, identifying problems and improving the performance of a point with a low NPS index.
The practitioner tells
How we increase our customer loyalty score (NPS)Anastasia Orkina,
Executive Vice President of Marketing at VimpelCom
We constantly analyze customer data, which increases the NPS index. For example, by assessing information from customer devices, we obtain information about the quality of voice communications in a particular area. Developing new tariff plans, we are trying to study how people accepted the previously introduced tariffs, which services they use more, which ones they prefer. Subscribers' assessment of the quality of services provided allows us to make changes and improve our service. For example, we conducted a study and concluded that contacting a call center is not popular and clients increasingly prefer to resolve any issues through online services, often independently and without the help of specialists, so we relied on the development of such services and began to introduce online service channels.
How else can you maintain a high level of customer loyalty index?The NPS system involves not only direct collection of feedback on the company’s performance and customer opinions. There are a variety of loyalty programs that help managers understand how customers feel about their business. For example, retail retail chains They use various loyalty programs, bonus programs, and sales in their activities. The Cashback system is very popular, suggesting a return of 5% of the check amount to a special discount card. These points can be used to pay for part of your next purchases. Such programs are profitable because they allow people to get a discount on their next trip to the store, and companies can retain their customers.
Online stores also use various systems customer retention and feedback collection. When ordering goods on the website, the buyer can receive the most favorable discounts, as well as personal account bonus points are awarded that can be spent on your next purchase. Referral programs are also very popular, when in their personal account each user can receive a special link by clicking on it new buyer will be the owner of an individual discount. By distributing such links, users themselves attract new customers to the online store, for which they receive additional bonuses or discounts on products for each referral.
Also, large chain stores use special bonus programs and issue gift certificates and cards, the purchase of which is much more profitable than usual. Many companies enter into agreements with each other. This is how, for example, links between banks and retail trading enterprises: By buying a product in a store and paying for it with a card from a certain bank, a person can receive bonuses or a good discount.
The customer loyalty index is also positively influenced by constant monitoring of the activities and prices of competitors, this allows companies to quickly change the price list for their goods and services, as well as provide discounts certain groups persons
Economic and emotional customer loyaltyBonus programs for motivating clients, as well as providing favorable discounts, undoubtedly, stimulate people to make repeated purchases, but are they still satisfied with the purchase and are completely loyal to the company?
Enterprises that plan their activities to retain old and attract new customers, correlating them only with bonus or discount programs, sooner or later may encounter conditions under which it will be impossible to provide a discount or continue bonus programs and this activity will turn out to be economically unprofitable. At the time of crisis, people tied to companies only by economic factors can easily leave for competitors or postpone the purchase, waiting out difficult days. Thus, the customer’s loyalty to the company, based only on economic factors, is not some absolute indicator of the success of an enterprise and does not guarantee stable profits in the future.
It is also a mistake to believe that a company can bind a client to itself by offering him some unique product or a service that cannot be purchased from another company. As shown world economy, no matter how complex a product is, no matter how unique it may seem, sooner or later it always has competitors, and often their offer is significantly more profitable for the buyer.
For the company, the most profitable thing is the emotional attachment of the client, when his actions are guided not by stingy economic sense, but by strong emotional motivation. To do this, enterprises need to establish business processes in such a way that people receive only positive emotions at all stages of interaction with them. To do this, the manager needs to organize the company’s activities in such a way that it works like clockwork, all mechanisms are convenient for both employees and customers, and the staff must be as competent as possible in their field, polite and loyal to each client. Having made a purchase or received a service, a person should be as emotionally satisfied as possible. He should tell his friends about a great company where everything goes quickly, conveniently and efficiently. Thus, the person himself will not only be emotionally loyal to the company, but will also describe its activities in vivid colors and positively to his social circle - your potential clients.
A striking example of establishing emotional loyalty between a client and a seller is the STV INK company, whose employees did not just advise their customers over the phone about the possibilities of modern computer equipment, but also offered to try playing computer games on computers assembled by this company in one of the nearest branches. Next, the person received the address and time at which his visit to the office was scheduled, where the potential client was warmly greeted by employees, everything was explained to him, they were shown the capabilities of the equipment, and they even tested computer games together. A satisfied client entered into an agreement for the supply of equipment, and then also recommended the company to his friends. Thus, by relying on the emotional factor of cooperation between the company and the buyer, the company was able to become a leader in its market segment and increase profits many times over, scaling the network of branches throughout the country and making the consulting service loyal to the client.
How to establish feedback with respondents who have become part of your company's customer loyalty indexThe creator of the NPS customer loyalty index system, Fred Reichheld, argued that this indicator of customer loyalty itself is undoubtedly important, but even more significant are the actions of the company’s head to attract and retain promoters, that is, people who speak highly of the company’s activities and are key players in the NPS system. It is important not to obtain the NPS index, but to be able to quickly use it.
The NPS ecosystem itself does not arise with a survey of a company's customers. To successfully establish feedback, a number of measures are required to maintain cooperation between the company and the consumer. The purpose of these measures is to let customers know that you care. Even if the person was dissatisfied, but the company solved the problems that arose, 70 percent of such outcomes will be in favor of the company, and the buyer will still remain with it.
The number one mistake businesses make without fully understanding the NPS system is abandoning customers named by critics. Firms consider such consumers to be lost forever, but this is completely wrong: even a customer who remains dissatisfied can turn from a critic into a satisfied promoter.
If customers, for example, after a free trial service begin to criticize both the product and the company, this only means that these people care, they want to improve the service with their comments or make the company’s services better. As soon as the company fulfills their conditions, these initially dissatisfied customers can become those same promoters and begin to advertise your brand among their acquaintances, friends and colleagues.
It can be assumed that the most the best way To re-attract customers who have abandoned your company, you will send them personal messages in which they will be asked to answer the question of what they didn’t like about the product, service, or in general what they didn’t like about the company, as well as asking them to suggest what and how they would like change and improve. The essence of all these actions is to collect information that allows you to improve the perception of your company and your brand by potential buyers and service customers.
For example, to solve problems that your customers have, you can offer them a free instruction manual for the purchased product by posting it on your website, and also place sections with drivers for electronic devices there.
You can extend the period of free use of your software product, offer discounts when upgrading to an advanced paid version of the software.
Neutrals are so named because they are generally indifferent to your products: there is no negative feeling, but they also do not evaluate your product positively. Neutrals seem to be in thought, waiting for what will happen, and only then they will decide on their choice or refusal.
But since neutrals respond very poorly to feedback, unlike critics and promoters, attracting them is a non-trivial and very difficult task. According to research, only 37 percent of people in this category responded to feedback.
Neutrals, due to their position, do not have a direct negative impact on business, but, being somewhere nearby, without taking any actions, as if hanging in anticipation, they are able to begin to look for better opportunities for themselves. Your competitors may find them, and your neutrals will quickly become their promoters, strengthening the position of their rivals in the market they share with you. If this category is not attracted to purchases, their number can grow like an avalanche, and accordingly, if your competitors have any advantages, this whole huge mass of neutrals can immediately go to them.
To attract neutrals, you can use the following methods:
- Offer them discounts or upgrades to your service level.
To attract neutrals, you can use personal, exclusive discounts; attract them to you by giving them best conditions service.
- Send them emails with product updates.
Probably, having become acquainted with your products for the first time, neutrals at that time did not find an attractive offer for themselves. But this does not mean that they have completely abandoned your services and will not return to your store or website. Offer them email newsletter something new, make your product offering more interesting than your competitors. Perhaps neutrals who would never visit your site again, having received email, will follow the link in it and appreciate your updated range of products.
The most profitable customer segment is promoters. They buy the product, are satisfied, and recommend it to their friends and colleagues. But you shouldn’t take the presence of this category of clients for granted, they didn’t just appear out of nowhere, something in your company and services attracted and retained them. If you understand what promoters liked so much when interacting with your company, you will receive a unique tool for enterprise growth and increased sales. Feedback from this category is very important because it allows you to understand what attracts them to your company. Loyalty and gratitude programs help establish such a connection; they will not only allow you to analyze the data received, but also help strengthen relationships with promoters and will make them your regular customers in the future.
To resolve feedback issues with promoters, you can use the following methods:
- Thank them. Send to email a letter of personal gratitude, give your company paraphernalia, the main thing is that your clients see and know that they are remembered and appreciated.
- Invite them to check out your other projects. Since promoters are initially ready to recommend your company to their friends, it would be a good idea to introduce them to your other products, as well as give them personal discounts.
When conducting an NPS survey, only 60 percent of buyers agree to answer the questions. The remaining 40 percent are people who can also become your company's clients. But in fact, attracting this category of consumers is extremely difficult; it is easier to change the opinions of critics than to get feedback from those who did not respond. But you shouldn’t immediately give up working with such a huge group of potential clients; you should still try to reach out to them. Although these people have no impact on customer loyalty scores, they can have a significant impact on your business and your income in the future, so take this into account.
What problems can you encounter when implementing NPS (customer loyalty index)
The NPS customer loyalty assessment system, despite its simplicity and effectiveness, has a number of disadvantages. First of all, the NPS methodology has been criticized due to the need to separate it into economic and emotional components. Also, the problems of technology include the fact that it characterizes the theoretical possibility that the client will make a repeat purchase, a kind of probability of this event, but does not give firm confidence that this will happen in reality.
The question itself is very vague: “Will you recommend your friends to visit our store and make purchases in it?” Yes, promoters are ready to advertise your company to their friends, but this does not mean at all that a well-disposed consumer and his entourage will come to your store and make a purchase there. Also, the customer loyalty index assessment system does not take into account acquisitions that have already taken place from your competitors, and possible similar transactions in the future. You should also take into account that a person cannot be completely confident in his future and the fact that he is going to come to your store and re-purchase a product does not mean that he will definitely do so.
It should be noted that purchase satisfaction and customer loyalty do not always have a direct relationship. A person may be satisfied with the purchase of a product, but the second time he will go to competitors and purchase products from them. Therefore, purchase satisfaction and loyalty in some individual cases should be taken into account separately.
For the most effective use customer loyalty index, it is necessary to ask them not only one main question, but also a number of clarifying ones. For example, a client, having assessed the company’s work, gave not 10 points, but 9. Yes, he is still loyal and is a promoter, but how do you find out why he wrote off one point, what motivated him to give not the highest rating, what circumstances influenced this? Additional questions allow you to collect statistics and, based on it, improve the company’s activities, increasing the customer loyalty index.
It is also necessary to take into account that NPS can show itself perfectly in a calm market, but when there is a rush demand for new product reviews can be fanatical and not entirely objective.
For example, when a new game console enters the market, stores in the first days are crowded with customers wanting to purchase the new product. Excessive demand won't give it to a new console objective assessments according to the NPS system. When interest subsides, calm consumers will go to the store, who will soberly evaluate the product and service and give objective answers to the questions asked to obtain a customer loyalty index.
It is also worth considering the factor of when the purchase is made and collecting statistics on customer reviews. Often, at the beginning of sales, reviews are very positive, but then there is a certain decline and even customer indifference.
A simple example. The buyer comes to the store and purchases reflex camera, when testing its polite consultants talk about technical specifications devices, take test pictures. The customer goes home with a new camera, satisfied with their purchase. At this point, he is ready to give the store 10 out of 10 points. But after a week, having already become accustomed to new technology, the client begins to notice noise in one of the areas of the photo in the photographs: it turns out that this is a group of dead pixels on the camera matrix. The client is forced to submit the camera for diagnostics and warranty repairs, wasting his time and nerves. And if at this very moment they call him from the feedback processing center and ask the buyer’s opinion about the store, it is very unlikely that he will answer with the same positive 10 points out of 10. Most likely, the person will be disappointed with the purchase, because he bought a low-quality product and cannot You can fully use it by returning the camera for repair. But it should be borne in mind that the client’s opinion may again change to a positive one if he did not experience any difficulties when accepting the camera for repair or if the device was replaced with another, new one that does not have any defects.
Thus, the example shows that the timing of collecting reviews is extremely important when creating a customer loyalty index.
Also, experts who criticize the system for collecting NPS reviews and forming a customer loyalty index point to too high a bias in the breakdown into customer groups. For example, the category of critics contains everyone who gave both 0 points and 6, but often those who gave a rating of 6 when purchasing in a regular store can rate the service 10 points when making a transaction through an online store website. Neutrals are unfairly removed from the NPS calculation formula, but this is a huge group of customers whose opinion is also important for the store.
Very often NPS has to be calculated for each specific point of sale. For example, it is inconvenient for a person to buy a product in a store located on the other side of the city, which is difficult to reach by public or private transport, so this buyer would never purchase a product there or would rate the convenience of the store at 1 – 3 points. But, having used the services of the same store through the website and received free delivery of goods to your home, the same client can give 10 points in the review on the web page.
In addition, there are industries and areas of trade in which the NPS index most likely will not reflect the real state of affairs of the company. For example, a person, by his psychological essence, is unlikely to recommend to his friends the purchase of a certain brand of toilet paper, but in a store he will rate this product 10 points, entering the group of promoters according to the NPS system, but not being one in this particular case.
As we can see, the customer loyalty index is an excellent tool for business in terms of assessing customer attitudes both to goods and services, and to the company as a whole. The customer loyalty index is very easy to use, provides good analytical data, allows you to build a flexible marketing policy, carry out convenient and profitable promotions, introduce discounts and bonus programs. But this indicator is also imperfect and has a number of significant drawbacks, therefore, when using NPS, it is necessary to take into account all the features of doing business in each specific case, and when developing a long-term company policy, rely not only on the customer loyalty index, but also on other market research systems.
Information about the expertsMaria Tsurkan, manager of the Umnitsa company, Chelyabinsk. "Clever girl." Field of activity: production of goods for child development. Territory: head office – in Chelyabinsk; representative office in Moscow; stores - in Chelyabinsk, Moscow, Yekaterinburg and Krasnodar. Number of personnel: 100.
Anastasia Orkina, executive vice president of marketing at VimpelCom. VimpelCom is part of the VimpelCom Ltd Group of Companies, which is one of the world's largest telecommunications holdings. The group's companies provide services under the brands Beeline, Kyivstar, Wind, Infostrada, Mobilink, Banglalink, Telecel and Djezzy. As of June 30, 2015, the number of mobile communications subscribers of the Civil Code is 213 million people. Official website - www.vimpelcom.com.
I saw NPS questionnaires on the websites of large banks and online stores, and received SMS with surveys from mobile operators. The first reaction is to go to a marketer and set the task of implementing a customer loyalty index counter on your website. I'm sure that's exactly what many people do.
The purpose of this article is to warn about a dangerous mistake in marketing: thoughtless and incorrect implementation of the NPS questionnaire.
Why is Net Promoter Score needed?Consulting agency employee Fred Reichheld analyzed customer loyalty to the most different companies in the USA: passenger air transportation, insurance, car rental. Hundreds of corporations, work schemes and thousands of different questionnaires. As a result, there is zero opportunity to compare customer loyalty of several companies in the same area.
As an alternative, Fred suggested making a questionnaire with a single question: “How likely is it that you would recommend our company/product/service to a friend or colleague?”, and a ten-point scale.
The advantage of such a questionnaire over a standard set of answers is its versatility. With one rating, a client can express what he thinks about your company/product.
Another question is to interpret what this estimate means. After filling out the questionnaire, a feedback procedure with the respondent comes into play to answer the question: why you can (or cannot) recommend our service. In some cases, they also offer a third question about what the company can do to improve.
There is no single algorithm here. Sometimes they ask you to fill out the appropriate form immediately after the first step, sometimes they catch up with you by letter or call.
If players adopted this metric, Fred believed, every company in a competitive industry would find it easier to fix customer problems, increase profits, and instantly measure the effectiveness of innovations.
According to Reichheld, in most industries there is a relationship between the level of growth of a company and the number of promoters among its clients (those who chose 9-10):
I don’t know whether working for one of the reputable US consulting agencies (Bain & Company) helped the researcher, but almost everyone agreed with Reichheld’s proposal. Including Fortune 500 companies.
The consumer loyalty index hypothesis has been criticized for its selectivity of areas in which a correlation has been observed between questionnaire scores and company performance. If your topic is not included in popular studies like the Net Promoter Score Benchmark Study from Temkin Group, it’s worth considering.
Customer Loyalty Index - NPS FormulaEverything would be too simple if it were limited to uploading the average indicators of the questionnaire for a monthly report.
Firstly, the entire pool of respondents is divided into three parts, depending on the ratings given:
- 1-6 - detractors. In other words, brand critics. Among them, the most zealous authors of negative reviews and future clients of your competitors;
- 7-8 - neutrals. Such clients are less likely to generate negativity, but there is no guarantee that they will remain your clients in the future. Any breath of wind and they will leave;
- 9-10 - promoters. Brand fans, long-time customers who actively promote the company’s products and generate positive reviews. They are usually most willing to communicate with managers.
For lovers of mathematics, a more complex calculation involving calculation of the variance of the study.
The NPS index is sometimes written without the percent sign - 60 instead of 60%.
When you install the questionnaire and take the first measurement, you will get a result from -100 to 100.
Question: when to take measurements? There is no consensus - there are too many differences between companies and customer needs in different areas.
Promoter.io CEO Chad Keck advises asking another question: how often should you show the questionnaire to the client?
If this is a mobile application user, the frequency may be as follows:
- 7-15 days after installation;
- 30-90 days after the first survey;
- 90 days after the second survey.
The 90-day cycle was chosen because, according to feedback from most Promoter.io customers, the company has a 90-day window before the detractor removes the application.
In other areas, this window may not exist at all - the questionnaire is sent after some key action has been completed. In online stores, for example, it is recommended to send an NPS questionnaire to the client after receiving the goods, since then both the work of the staff and logistics are assessed.
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Lost in translationReichheld's idea was to ask one question, in one single wording. Due to the translation, the question seems to remain the same, but the number of wordings changes it beyond recognition:
- On a scale of zero (“Wouldn't recommend”) to ten (“Would definitely recommend”), how likely are you to recommend this product to a friend or colleague? Ain.
- Are you willing to recommend our products or services to your friend or colleague? Texterra.
- What is the likelihood that you will recommend the company/product/brand to your friends/acquaintances/colleagues? Wikipedia.
- On a scale from 0 to 10, rate the likelihood that you would recommend the company to a friend or colleague. SMS from "Hello".
Agree, in this case you still need to choose a wording that the client will read to the end and understand correctly. For example, to the question: “Are you willing to recommend our products or services to your friend or colleague?” I would never answer 10. Because it only implies yes/no.
Net Promoter System: more than an indexIn the updated edition of the book about the main issue for business development, Fred Reichheld deciphers NPS as Net Promoter System (proof).
Indeed, the Net Promoter Index is not a number in the report. Behind this figure lies a set of analytical techniques and detailed user interaction procedures. In fact, this is already a full-fledged system for building loyalty by increasing the percentage of company promoters.
Bain & Company experts say that NPS is an integral business philosophy based on four points:
Implementation of the Net Promoter System involves five important steps and at least two teams of employees who manage the internal and external cycle of work with loyalty.
What are these steps?
1. Provide ongoing support from management. The company's management, the CEO in particular, should identify increasing the number of promoters and reducing the number of critics of the brand as the most important business priority. They must embed customer focus into the company's development strategy and be the first to be role models to train employees.
2. Begin to interpret research in a consistent manner. Over time, it becomes clear that not only a single method of surveying clients/employees is needed, but also a single method of interpreting the results. First of all, for the correct individual classification of clients and company employees. This is the only way to determine the value of investments in improving the quality of clients and the professionalism of employees.
3. Set up feedback, learning and improvement processes. The Net Promoter System is based on training mechanisms for individual employees and the company as a whole. The internal loop gives key employees and teams feedback from customers in real time, allowing them to quickly respond to changes in loyalty levels. Regular feedback helps employees make their own decisions: in which direction to develop.
Closed meetings become short meetings working group, whose goal is to motivate each participant to do better with clients and create more promoters. It is also here that changes affecting the company as a whole are born and discussed.
The goal of the outer loop is to support the company's customer-centric changes. The team uses closed-door meeting feedback, operational data and market intelligence to conduct in-depth analysis of customer issues and prioritize initiatives to improve the customer experience.
4. Create an atmosphere of loyalty among employees and teams. Company specialists must clearly understand how their work affects clients and be inspired by this in order to put 100% of their enthusiasm, creativity, and energy into the tasks they perform. This requires setting up ERP/CRM tools and creating an atmosphere of constant learning. You will also need to set up a motivation system using bonuses and gamification.
5. Create a powerful operational and analytical infrastructure. Another basis of the Net Promoter System is very fast feedback. Trained specialists are needed to request reviews, collect responses, track customer follow-ups, and analyze data. The guys who do this need to be regularly motivated by the outer loop team and have excellent analytical skills.
That is, if you are implementing NPS and want results, the matter will not be limited to a questionnaire.
In my opinion, only high-tech companies, such as SaaS projects, which can correctly analyze and evaluate every step of the client.
Since Netpeak specializes in promoting, in particular, SaaS projects, I’ll tell you how we implemented the NPS questionnaire in the multifunctional SEO platform Serpstat.
How Serpstat implemented an NPS questionnaire using SatisMeterAmong the advantages of SatisMeter are fast integration into the website, automatic translation into most languages of the world, customization of the questionnaire and provision of analytics in real time.
The service can be tested for free on 100 responses. It is the answers, not the displays of the questionnaire.
You can also integrate the service with Intercom, Slack, Segment, and send surveys in the form of in-app messages and emails.
For the questionnaire you can ask:
- color scheme;
- location on the screen;
- delay in seconds before display;
- subject, text and signature, if this is a letter;
- frequency of sending reports;
- company name;
- questionnaire language (you can set up multilingual, but you need to contact support);
- Is a text response required for the assessment?
Another important bonus is that you can add users with administrator rights.
You can install SatisMeter using:
- Segment.com;
- Eager.io;
- iOS SDK;
- HTML Snippet.
Serpstat configured the service using HTML Snippet. To do this, we added a custom HTML tag to Google Tag Manager with the following code:
(function() ( window.satismeter = window.satismeter || function() ((window.satismeter.q = window.satismeter.q || ).push(arguments););window.satismeter.l = 1 * new Date();var script = document.createElement("script");var parent = document.getElementsByTagName("script").parentNode;script.async = 1;script.src = "https://app.satismeter.com /satismeter.js";parent.appendChild(script);))(); satismeter(( writeKey: "my_satismeter_key", userId: "1234", // TODO: Current user unique ID (required) traits: ( name: "John Doe", // TODO: Current user name (optional) email: " [email protected]", // TODO: Current user email (optional) createdAt: "2016-11-16T17:01:19.518Z" // TODO: Date when user was registered (optional) ));
The required parameter is only the user ID. If you already have User ID configured ( how to do it), just use this id.
As a result, the code will look like this:
(function() ( window.satismeter = window.satismeter || function() ((window.satismeter.q = window.satismeter.q || ).push(arguments););window.satismeter.l = 1 * new Date();var script = document.createElement("script");var parent = document.getElementsByTagName("script").parentNode;script.async = 1;script.src = "https://app.satismeter.com /satismeter.js";parent.appendChild(script);))(); satismeter(( writeKey: "my_satismeter_key", userId: ((DLV - User ID)) ));
Actually ((DLV - User ID)) is a data level variable for getting the User ID.
Since the service does not determine which users to show the questionnaire to, you must set the parameters yourself. You can, for example, define a list of IDs to which you want to send a survey, and pass a special event to the dataLayer, which will trigger the survey tag.
Serpstat chose the following segment:
Language is en first payment count is 1 plan is not Registered user email does not contain [list of individual users and user groups] country is not Russian Federation country is not Ukraine country is not Belarus country is not Kazakhstan
In order not to involve developers at all to transfer new data to the datalayer, specialists obtained the IDs of such users from Intercom and configured the activation of the questionnaire tag:
if((function() ( var arr = [ //list of IDs from Intercom ]; if (arr.indexOf(((DLV - userId))) >= 0) return(arr.indexOf(((DLV - userId)) ) + 1); else return undefined; )) ()) ( dataLayer.push(( "event":"gtmUaEvent", "eventCategory":"SatisMeter", "eventAction":((DLV - userId)), "eventLabel ":document.location.href, "eventNonInteraction":true )); )
The tag is activated under the following conditions:
"event":"gtmUaEvent", "eventCategory":"SatisMeter"
An easier and more cost-effective option is to set up a survey using free services like userreport or GetResponse survey forms. Agency specialists often do this at the request of clients.
How to set up NPS using the free service userreport.comUserreport specializes in conducting online surveys. The service integrates with Google Analytics, supports collecting email addresses, and customizing forms. Plus, there is a good translation into Russian. It's surprising that it's free at all.
The only negative is that the service does not have settings for activating the display of messages. But the display of the invitation can be activated with using Google Tag Manager. The scenario could be as follows: the user must spend at least 3 minutes on the site.
The algorithm of actions will be as follows:
1. Create a “Timer” trigger. Take 30,000 as the interval, the limits are 7.
2. Create a custom HTML tag with the code UserReport and activation rule:
(event = show-user-report) + (page that is not a cart) + (page that is not a step in the checkout process).
3. Create a custom HTML tag with an activation rule based on the timer configured above. The tag should have a script that checks the difference between the current and saved time. If the difference is more than 3 minutes, an event with the value show-user-report should be written to the dataLayer.
try ( var n = (new Date()).getTime(); if (localStorage.getItem("time") == null) ( localStorage.setItem("time",n); ) var time = parseInt(localStorage. getItem("time")); var dif = n - time; if (dif >= 180000000) ( localStorage.setItem("time",n); ) if (dif >= 180000) ( dataLayer.push(("event ": "show-user-report")); ) ) catch (e) ( )
The results of the NPS questionnaire from the service can be sent to Google Analytics using custom dimensions. To do this, you need to set up integration with Google Analytics:
1. Not everyone understands why this is necessary. If business owners are not ready to change their minds and implement the Net Promoter System, other questionnaires may actually be more useful.
2. Not everyone understands how to do this. There is still little information on the loyalty index on the RuNet, especially cases. I hope this post and your comments make up for that.
Banks were among the first to introduce consumer loyalty index. In 2016, a survey of banks was even conducted in Russia, according to which the average NPS level was 30. In the USA, the average NPS among banks was 32 points.
Quite comparable indicators, although usually in countries with different cultures greater spread of estimates.
Moreover, the NPS of multinational corporations may differ in different countries. For example, the Apple loyalty index in 2015 in France was 57, and in the USA - 71.
By the way, the same Temkin Group noticed a pattern in all 20 areas of the study: the lowest rates were obtained from young users (under 35 years old). The sample of users from 35 to 44 years old left the most high marks companies in almost all areas.
Conclusions1. The introduction of a consumer loyalty index should be considered only as initial stage implementation of the Net Promoter System into the company structure. Otherwise, the NPS survey numbers are no more useful than the voting results under a dictatorship.
2. Before implementing NPS, study whether there has previously been a correlation between the results of the index and the dynamics of the company in your industry. The consumer loyalty index has been calculated in the West for almost 15 years; there is enough data on the topic in the public domain.
3. Select the translation of the phrase “How likely is it that you would recommend our company/product/service to a friend or colleague?” that suits you.
4. When installing an NPS questionnaire, you must specify the correct display time and customer survey period. There are no universal recipes here; it all depends on the area. Online stores, for example, should ask you to fill out a questionnaire not at the time of payment for the purchase, but after delivery of the goods. For mobile applications There is a window of 7-15 days after installation before the first display of the questionnaire, and so on.
5. Install the questionnaire using SatisMeter and Google Tag Manager - you will get more opportunities for data analysis and a scalable basis for further work within the Net Promoter System.
(Net Promoter Score) – an indicator of customer commitment to a product/service/company. It is used to assess readiness for repeat purchases. It is also called the willingness to recommend index. You can learn how to work with NPS at,.
The Customer Loyalty Index helps to evaluate and understand how to increase customer loyalty.
The consequences of insufficient efforts in this direction are disastrous:
- The average check is decreasing
- LTV (customer value) is falling,
- New products do not arouse interest among buyers, since there is no understanding of the portrait of the target audience,
- The buyer dropout rate is growing.
As a result, all this will lead to a noticeable drop in sales and, as a result, a decrease in profits. To prevent this from happening, you must:
- Measure your loyalty index monthly,
- Be interested in consumer opinions about the company and product,
- Classify customer recommendations
- Collect feedback from satisfied supporters (promoters) and critics (detractors).
NPS is measured by surveying your current customers. Ask them a simple question: “On a scale of 10, would you rate the likelihood that you would recommend us to your family/friends/acquaintances?”
Use this question also as an opportunity to get recommendations. To do this, ask another question in open form: “What needs to be done so that next time you give us 10 points?”
Remember that recommendations should also be asked from those who “rated” the company’s work with 10 points. 100% supporters can always have bright ideas to improve the product. Just as a thank you because they are happy with you and you inspire them.
To conduct a survey, you can combine several channels to get as much information as possible:
- calling the current database;
- form on the website;
- office survey;
- social network survey;
- survey of partners if you use their network to sell your product.
To calculate the loyalty index, divide all respondents into 3 groups depending on the rating they gave you.
1. Critics or dissatisfied (detractors) - buyers who gave you from “0” to “6” points. They will not recommend you to anyone. Don't even hope.
2. Neutral or passive - people who gave you a rating of “7” or “8”. Overall they are satisfied. But they are unlikely to recommend it. You just didn't catch them. Work with them purposefully. And they will promote you.
3. Supporters or promoters - this group is completely loyal to you and gives you 9-10 points. Listen to them carefully. Treasure their trust.
Now let’s calculate the NPS indicator itself using the formula:
NPS = (Number of supporters / total volume respondents) - (number of critics / total number of respondents)
Customer Loyalty Index: what does the result mean?There is a classification of loyalty indices, according to which you can classify your business into 1 of 3 categories.
5−10% NPS is a rather low loyalty indicator. A company with such a loyalty index practically does not develop. And is about to fall victim to competition and the market.
45% NPS is a good indicator. It says that the business is growing and competing successfully, although it is not an industry leader. To improve NPS, you don’t even need to protect your won positions, but move forward, increasing the number of loyal customers.
50−80% NPS are market leaders. Buyers are ready to return to them again and again. Such companies have excellent potential for further growth. But don't rest on your laurels.
Of course, this classification is quite approximate and the specifics of the industry must also be taken into account. Here are a few examples of “normal” indicators in business areas.
- Communications/telecommunications - 25%
- Car sales - 60%
- Insurance - 35%
- Banks - 25%
- Shops and supermarkets - 50%
- Online trading - 20%
- Restaurants, cafes - 20%
- Construction/renovation – 15%
- Healthcare/private clinics – 10%
- Training/consulting – 40%
Measurements and calculations of the customer loyalty index must be optimal and carried out with a high degree of feasibility. Be guided by 4 principles.
Fast response. Measure NPS based on the results of a marketing campaign, improvement, introduction of a new product, etc.
Follow the trends. All recommendations must be typed. Study the portrait of the target audience whose reviews fall into one category. What do you see? Maybe you will notice that older generation tend to criticize? Or is this group of customers expecting better service?
Change your plans. In any normal business there is road map plans for marketing and improving touch points. If the trends that were identified as a result of analyzing the recommendations of those interviewed did not coincide with your development intentions, adjust immediately.
