As an organization, how do you figure out when a customer is really excited? How do you measure results and set customer-centric goals, challenges and targets? In what ways do you make customer enthusiasm concrete for your employees? And how do you encourage colleagues to perform the maximum for the customer every day?
Net Promoter Score (NPS)
There are different types of Customer Experience KPIs – CX KPIs – in the form of enthusiasm, loyalty and satisfaction, for example. A widely used CX KPI is the Net Promoter Score (NPS).
Net Promoter Score (NPS) is a research method developed in 2003 by Satmetrix, Bain & Company and Fred Reichheld. Instead of having customers fill out endless questionnaires, they came up with a method where the customer only has to answer a few questions, but as an organization you can still get an awful lot of information out of it.
Within the NPS there is one ultimate question, namely customer loyalty. The central question is:
‘How likely would you be to recommend product/service/company X to friends or family?’
The respondent answers on a scale of 0 to 10 and then answers any questions associated with it to help you understand the reasons behind the score. Based on the score given, respondents can be divided into three groups: Detractors, Passives and Promoters. To calculate the score, take the percentage of promoters (the percentage of respondents who gave a 9 or 10) and subtract the percentage of detractors. We display the result as an absolute score, not a percentage, and this score is between -100 and +100.
Net Promoter Score and objectives (KPIs)
So how do you determine exactly what a score between -100 and +100 means for your organization? Of course, you always want to set the bar high enough for your colleagues as well as yourself. It is important that the goals for your organization are realistic but also challenging. Don’t stare blindly at benchmark figures, there are many factors influencing scores so the absolute value will not always correspond to an in-house measurement.
Research results are also an extremely useful tool as input to set goals and targets. In this, realize well what underlying processes are necessary for an increase. With calculative metrics like the NPS, a 10-point increase per year is a relatively easy goal when your score is -50, but becomes more difficult when you are already at +80, for example.
Our advice is to start by setting a goal for your organization as a whole and, in addition, an NPS goal for each employee, job level or department, for example. For example, you can also use this score as a KPI for your bonus system to reward your employees with fair bonuses.