There are various options for making Customer Experience concrete and measuring it, for example in the form of enthusiasm, loyalty and satisfaction. Three commonly used and proven KPIs are: Net Promoter Score (NPS), Customer Effort Score (CES) and Customer Satisfaction Score (CSAT). In this blog you can read how you can calculate NPS.
NPS question: Measure how loyal your customers are
The Net Promoter Score (NPS) is a research method developed in 2003 by Satmetrix, Bain & Company and Fred Reichheld. No lengthy questionnaires, but a simple method where the customer only has to answer a few questions, while as an organization you get a lot of information from it. Within the NPS there is one ultimate question, namely that of customer loyalty. The NPS question is:
'How likely are you to recommend product / service / company X to friends or family?'
Calculating Net Promoter Score
The respondent answers a scale of 0 to 10 to that central question and then answers any questions that are associated with it. This way you find out the reasons for the score to better understand your customers. Based on the score given, respondents can be divided into three groups: Detractors, Passives and Promoters.
Not satisfied customers
Negative word of mouth
Not very enthusiastic
Sensitive to competition
Continue to recommend to others
Ensure the growth of the company
To calculate the NPS, you take the percentage of promoters (the percentage of respondents who gave a 9 or 10) and subtract the percentage of detractors from that. We display the result as an absolute score, not as a percentage, and this score is between -100 and +100.
Example outcome NPS
How do you determine exactly what a score between -100 and +100 means for your organization? The NPS is between -100 and +100. If your company, brand or product scores higher than an NPS of 20, you have fairly loyal customers. If you score lower than an NPS of 0 (for example -10), you will have significantly fewer loyal customers. The best thing is of course when every respondent is a promoter. The score is then +100. The NPS is therefore a very important indicator of whether your customers are loyal to your company.
Now you know what the NPS is all about. However, this is only a method. It only becomes interesting if you know what you can do with the NPS in daily practice. And how you can link various KPIs such as CSAT, NPS and CES together to measure customer feedback to which you can connect direct and daily follow-up actions. The E-book 'Measuring and Managing CX' contains many practical examples, tips and solutions that you can apply directly within your organization.
Download 'Measuring and Managing CX'
Which 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?