How to measure NPS?
The Net Promoter Score question
There is one ultimate question within the NPS, namely that of customer loyalty:
'How likely is it that you would recommend product / service / company X to friends or family?'
Loyal or satisfied: what is the difference?
How to calculate NPS?
Through an NPS survey, the respondent answers on a scale of 0 to 10 and then answers any questions that are linked to this. On the basis of their given scores, respondents are divided into three groups: detractors, passives, and promoters. For the Net Promoter Score calculation, you take the percentage of promoters (the percentage of respondents who gave a 9 or 10) and you deduct the percentage of detractors from them. The result is displayed as an absolute score, not as a percentage, and this score is between -100 and +100.
Also read the blog post: 'Why is the NPS (Net Promoter Score) so important?'
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Which Key Performance Indicators (KPI's) are used for the measurement and management of Customer Experience and how can you set fair targets that will motivate everyone to create a truly customer-centric organization?
What is a good NPS score?
How do you determine what an NPS score between -100 and +100 means for your organization? It is important that the objectives for your organization are realistic but also challenging. Blindly staring at benchmark numbers makes little sense. There are many factors that influence the scores, which means that the absolute value will not always correspond to your own NPS calculation. It is also important that you look not only at the score itself, but also at the trend. That says so much more than just a number as a snapshot.
Research results are also an extremely useful tool as input to formulate goals and targets. Understand what underlying processes are needed for improvement. In calculative metrics such as the NPS, an increase of 10 points per year is a relatively simple goal when your score is -50, but this becomes more difficult when you are already at +80, for example. First, formulate an objective for your organization as a whole and also an NPS objective per employee, job level, or department. This score can also be used as a KPI for your bonus system to reward your employees with fair bonuses.
How to improve NPS?
You do this by facilitating your employees on the basis of the NPS measurements. Do not use scores to assess your employees, but rather to motivate them. Do not punish your employees, but support them with NPS. Organize your processes and systems so that your employees have continuous access to customer feedback linked to customer data. For example, via an app on their smartphone where they can see their NPS results in real time and the experiences described by the customers themselves.
Give your employees not only insight into the NPS results but also into the stories and the emotion behind the score (from an open answer field). Then they will know why the customer gave a certain score. That's where the emotion comes in, and with that, you can literally read the customer's experience in their own words. What lessons can they learn to improve Customer Experience even more? See NPS as a long-term strategy, and not link it to any hard consequences, such as tough short-term targets for bonuses. Rather, connect bonuses to an overall positive NPS instead of just for achieving certain revenues or attracting customers. Use the power of NPS or other metrics as a 'system' and not as a score in itself. Only then you the scores will go up.
How to get the most out of NPS? Download Ten Tips from Carglass.
Net Promoter Software
A good system for measuring Customer Experience automatically links collected feedback to your internal customer and employee data, so that this information can be directly translated to follow-up actions per department, per location, or per individual employee level. Through automatic push reports, dashboards, and trigger mails, your organization will receive continuous insight into the NPS and the follow-up actions that are required. It then becomes a system with which you can adjust the organization based on the Voice of Customer to increase customer loyalty (NPS).
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Whitepaper: Get a grip on hard KPIs, customers and employees and manage based on the right insights
Every organization strives for a long term relationship and enthusiastic customers and employees. But how do you achieve that? And how do you get the right insights so you can act on them and what does this all bring you?
Essential features for Net Promoter Score Software
Automated and continuous
As an organization, take the right decisions based on continuous insight into customer loyalty.
As few questions as possible
Don't bother people with long questionnaires, which could annoy them. Just ask a few questions, but make sure you can find out why they give a certain score.
Distribute information as quickly as possible to the right target group
A Net Promoter System distributes information automatically, quickly and in the right way to the right stakeholders, so that one can immediately respond to the feedback, for example feedback with a low NPS score or a complaint.
Correct data links
A good Net Promoter System enriches NPS data with the CRM data of your company and is able to combine information from different systems and sources in one solution. Prevent manual, time-consuming and error-prone processes.
Categorize open answers
By asking respondents to categorize their answer, you will find out exactly why they gave a certain answer. This provides broad insight into the 'why' of a given NPS.
Centralize customer stories
It is important to allow customers to elaborate on their given NPS score with an open answer, so that employees will be able to understand properly why a customer has given a certain score. In this way, you will receive in-depth insight into the stories and the emotion behind the score. Customer feedback will really become an active part of the organization.
Priorities overview
Make sure that you as an organization have a clear and orderly priorities overview per department, branch, or employee at your disposal. This allows you to implement structural improvement points at strategic, operational and individual levels.
Visualize data with real time infographics
A good NPS system automatically generates real time infographics. In this way, data is visualized in a manageable and informative manner, and customer feedback will become an integral part of the organization.
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