NPS stands for Net Promoter Score. It is a customer loyalty metric developed by Fred Reincheld, Bain and Company along with Satmetrix. It was published in the 2003 Harvard Business Review entitled “One Number You Need to Grow.”
I want to look at how to approach your NPS fixes so that you are getting the most bang for your buck. In short – how to intelligently improve the parts of your NPS score that hurts the most.
NPS in it’s truest form is your “Customer Happiness” score. Getting a higher NPS score does not mean you will make more money (it often is correlate but it is not a guarantee). Likewise a negative NPS score does not mean your product is a failure.
Net Promoter Score is a very valuable tool in conducting your user research and understanding. However there are several pitfalls that can often be easy to fall into.
There are very few circumstances in which you should not provide the opportunity for customers to fill out the NPS survey. The key then is during the analysis phase when the NPS score is calculated. You can calculate multiple NPS scores for various customer groups and obtain richer information into the sentiments of your company.
The value of NPS data does not come from the “pat yourself on the back because we have a good score” but rather from being able to understand and quantify your customer feedback.
The NPS survey question does not have to be exactly the same word for word. You can tailor it a bit – especially to help reflect your industry. Take a look at these examples to get a better feel for example NPS survey questions.
The short answer is Yes. The depth, degree and frequency to the correlation however is what can vary dramatically between companies.
The short answer is that the more NPS responses you have to work with, the more accurate your NPS score. This allows a better understanding of the data.
Asking the ultimate customer service question allows companies to understand whether or not their customers would recommend them to their family and friends. This question is then tallied up to form the Net Promoter Score.