This time, we will introduce how to calculate NPS, which indicates the degree of customer recommendation.
In addition to the calculation method, we will also introduce the survey implementation method and analysis method so that it can be implemented immediately.
- What is NPS? CS: How is it different from customer satisfaction?
- NPS calculation method and analysis method
- How NPS is implemented
- NPS tool introduction
- How do you use your NPS score?
- Master how to calculate NPS
What is NPS? CS: How is it different from customer satisfaction?
NPS is an abbreviation for Net Promoter Score, and is an index for knowing the customer’s intention to continue using the service.
By calculating NPS, you can see how often your product or service is recommended to others.
CS: Customer satisfaction is the same as NPS in that it evaluates how satisfied customers are with products and services, but CS: Customer satisfaction is the evaluation of products and services at the “current time”.
Even if a customer is rated as “satisfactory” at the time of evaluation, we do not know whether they will recommend the product or service to their friends and acquaintances.
Therefore, the major difference between CS and NPS is whether or not they measure whether they want to recommend a product or service to others.
Here’s how NPS is calculated:
NPS = [Percentage of Promoters (%)] – [Percentage of Detractors (%)]
NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.
The calculation of promoters and detractors is as follows:
First, create a question, “How likely are you to recommend this company (or this product/service/brand) to a friend or colleague?”
Customers are then asked to rate their product or service recommendation on a scale of 1 to 10.
After collecting the answers, classify the customers into “three groups” based on the points (recommendation) based on the answers.
- Respondents with a score of 0 to 6 are “detractors”
- Respondents with a score of 7-8 are considered “neutral”
- Respondents with a score of 9-10 are
classified as Promoters.
“Detractors” are customers who are dissatisfied with your product or service and, if left unchecked, can spread bad publicity.
“Passives” are customers who are satisfied with the product or service but are not enthusiastic, and are more likely to migrate to competitors.
A “promoter” is an enthusiastic customer about a product or service. In addition to being repeat purchasers, they may also play the role of “recommender” to recommend the service to others.
How NPS is implemented
Create a question, “How likely are you to spread this service/product to your friends/acquaintances/colleagues?”
In order to give equal figures, let’s make sure that the age bias of the survey respondents is not present.
We also recommend using an NPS tool, as it takes time to collect responses. If you use the NPS tool, it will automatically calculate digitization and data conversion, so you can reduce the time and effort required for calculation.
NPS tool introduction
Customizable to suit your needs! [Mopinion]
Data collection/reporting and analysis/behavior management are possible. It features a variety of customization options, allowing you to customize it to suit your purpose.
There is a 14-day free trial, with minimum monthly pricing starting at $89.
Collect responses by email or SMS [Wootric]
It is a service that allows you to easily analyze numerical values such as customer satisfaction and NPS.
You can collect feedback in a variety of ways, including email and SMS.
It also features a free plan.
Ideal for first-time NPS introduction [NPS Consulting]
Consulting that provides total support for the introduction, operation, and establishment of NPS. We have a complete support system in place, so even people measuring NPS for the first time can do it with peace of mind.
How do you use your NPS score?
By implementing and analyzing NPS before and after each measure, such as product function improvement and support expansion, you can verify whether the improvement or support expansion had a quantitative effect.
In addition, since NPS is a globally common number, it can be compared with competitors.
However, NPS is a numerical value that indicates the degree of recommendation, and it is not necessarily related to sales, so caution is required.
In addition, since GAFA and other companies that emphasize customer orientation use it as a [management index], it can also be used as a numerical target for CS (customer success) departments.
By setting numerical targets, you can expect to improve employee motivation.
Master how to calculate NPS
In this article, we will introduce how to calculate NPS.
It is important not only to calculate NPS, but also to conduct numerical analysis and devise an action plan.
Instead of calculating and quitting, think about how you can improve your numbers.