Developing an efficient marketing strategy is a task that requires analysis of the public of a company or its segment.
Today, there are several tools and software that offer complex ways of gathering data for these analyzes to be made. But sometimes, the information that should be prioritized can be obtained through methods that are considered simple.
What is NPS?
The Net Promoter Score is a method created to measure the level of customer satisfaction of a company and how good its relationship with them is.
The research methodology came after the publication of the article “The number you need to grow” in Harvard Business Review, written by Fred Reichheld, Consultant at Bain & Company.
The data generated by the NPS survey is valuable and can make up your performance indicators (KPI) framework. Aiming at medium and long term results, it is possible to measure the effectiveness of strategies aimed at customer satisfaction.
The research carried out must contain quantitative and qualitative questions, with those related to quality having more importance. This greater relevance exists because it is through qualitative responses that it becomes possible to identify problems related to the company, in addition to serving as insights to solve them.
How to calculate NPS?
To do NPS research, use objective questions first. Check out an example: “On a scale of 0 to 10, how much would you recommend (a brand or product) to a friend or colleague?”
After this item, it is important to insert a question that encourages an open comment from the respondent, such as, “Why did you give this grade?”. It is the answers to this type of questioning that will offer the most valuable information for your business.
With the results of the objective questions, respondents will be classified into 3 categories:
- Promoters: they are customers who already like your company, tend to cultivate a relationship with it and can probably refer it to family, friends and colleagues.
- Neutral: they are customers who are not dissatisfied, however, they are not loyal to your company.
- Detractors: people dissatisfied with their brand, product or service. There is a great chance that they will stop buying or using your services and may damage your business image.
At the end of the test, the results are calculated using the following formula:% of Promoters -% of Detractors. Neutral respondents are not used in the account.
For you to understand better, let’s simulate the simple use of this formula. Assuming that 100 people had answered a questionnaire, and the result was 60 promoters, 20 neutral and 20 detractors, the calculation would be as follows: 60% – 20% = 40 SPL.
Understanding and evaluating the results
After applying the methodology and with the data in hand, it is time to measure the results. The score classification follows the parameters listed below.
Excellent – between 75 and 100
In this scoring zone are classified the brands that offer excellent experiences for their audience. The perception is completely positive from the products offered to the service. Companies with this score must maintain their work to cultivate their relationship with customers.
Very good – between 50 and 74
Brands that are in this scoring zone have customers who see various qualities in what is offered, but point out which factors left something to be desired. Identifying which problems were encountered by customers is essential for their correction to be carried out.
Fair – between 0 and 49
Brands that are in this scoring zone need to review the relationship with their customers. Inefficiency, lack of product quality and lack of attention to customer service are errors that affect customers’ perception of your business. Identify the points most criticized by the respondents and seek practical solutions as soon as possible.
Bad – between -100 and -1
Only brands in a critical situation are in this scoring zone. Consumers are frustrated and can complain, damaging the image of companies. Being in this critical range means that the company must urgently rethink its strategies, as friction offers the risk of generating enemies of the brand and decreasing sales.
How to act on feedback
Feedback is one of the main reasons for implementing NPS. Cultivating a culture that stimulates you and understanding what your audience really thinks is part of the evolution process of your enterprise.
To do this, communicate to your client about the importance of your answer to the company and thank him after completing the questionnaires.
It is important to note that for customers to believe that the intentions for improvement are true, actions need to be taken in accordance with the responses and also disclosed, so that they know that their suggestion has helped to improve their business.
Discover the benefits of NPS for your business
Understanding what your audience thinks of your brand is essential for the next steps in marketing strategies that seek customer loyalty.
Quick to apply, easy to use
Using questionnaire templates, it is possible to easily create options that fit the context of your business and send them on the same day they are prepared.
After finalizing your application, the results will be simple to interpret information that can indicate the best path to follow with your company.
Take action quickly
The simplicity of the method allows to identify flaws in a quantitative and qualitative way. Even while the stipulated time for application is taking place.
Identifying customers with specific problems and helping them to solve them can be a great relationship strategy that offers the possibility to deliver solutions at the same time that a problem was found.
Competitor evaluation and comparison
Using your resources well, you can also acquire data about your competition and understand what your customers are thinking about it.
Unlike what some people think, comparison metrics are not vanity metrics. From them it is possible to identify weaknesses, strengths and opportunities that your business has the potential to take advantage of.
Does Net Promoter Score help you sell more?
The insights collected through NPS can contain strategic information for your sales industry.
Through the data collected it is possible to know the true perception that your customers have about your brand. This may be the missing touch to develop more efficient campaigns and sell more.
With the public profile drawn, your team will have arguments and resources to close negotiations much more efficiently.
Frequently asked questions about NPS
This methodology is new to many entrepreneurs. Therefore, doubts arise when considering its use and in its implementation stage. Check out answers to some of the most common questions related to the Net Promoter Score.
Does the profile of my company allow the test?
For sure. All types of companies can implement the methodology to measure satisfaction.
In fact, companies can carry out internal tests to identify their employees’ dissatisfactions and make their organizational environment better.
What is the best time to implement?
The best time to start is now, but take your time. There is no need for your first surveys to be large or done directly with your customers.
Test the NPS internally, understand how the process works and improve your inquiries, so you will feel safe when you arrive now to conduct the survey with your customers and they will notice the preparation behind your work.
How many people should I interview?
Multinationals and small businesses use this process, this means that there is no recommended total number, but a portion of their customer base.
For the statistical number to bring relevant and accurate results, try to get answers from at least one fifth of your contact base.
How often should I apply NPS?
Avoid asking questions too often, as your customers may view the practice in a negative way.
The minimum interval period recommended by the creator of the methodology is at least 3 months. The time between questions is longer depending on your strategy. Some companies opt for the 6-month interval so that their customers better understand their service and offer more detailed information.
A very important detail is to take actions that make respondents realize that their feedback is being used and put into practice to improve the company, strengthening their relationship with customers and contributing to improvements in the NPS.
Do I just need to take action on detractors?
Don’t be stuck only with criticism that exposes the points that need improvement in your business.
Taking actions to strengthen the relationship with neutral respondents to reward promoting customers can positively affect the way your company is perceived, preserving your best customers and creating new fans of the brand.
Use an online chat on your site for better NPS results
We hope that this content is useful for you who are looking for strategic improvements and are looking for new performance indicators.
After conducting your research and analyzing your satisfaction data, consider installing Websites Are Us online chat on your website and improve your company’s communication with your customers.