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What is a Net Promoter Score (NPS)?
The Net Promotor Score (NPS) indicates your customers' willingness to recommend your company. Based on the score given, your customers are sorted into one of three groups: promoters, passives and detractors (see explanation under "viewing the NPS-R results"). The overall score is a means to gauge customers' loyalty.
Setting NPS as a KPI
Use the NPS as a regular tracking method, not only for the entire company but also per business, product, store or (customer-service) team.
You may further think about tracking it for customer segments, geographic units, or functional groups.
Lastly, use this score as a benchmark. If your NPS is higher than your competitor's it is likely you have more loyal customers, are more successful, and will have more growth.
NPS-R(elational) vs NPS-T(ransactional)
There are two distinct ways of measuring your NPS:
On relational level (NPS-R)
On transactional level (NPS-T)*
The NPS-T is rather specific and measures the willingness to recommend based on completing a process or action. Read more about this question type here.
The NPS-R however, is more general and at the highest possible relational level: between your customer and your organization. The score is calculated based on responses to a single question:
How likely are you to recommend (our company/ product/ service) to a friend or colleague?
When to use NPS-R?
The NPS-R tells you how your customers feel about your brand/company. Therefore you use NPS-R if you want to get insights in this relationship and not to evaluate a specific touchpoint.
The NPS-R is a standardized question and uses a 11-point scale, where 0 implies not at all and 10 extremely likely:
How to set-up a NPS-R question?
Create a new form and select the Customer relationships category. You can start from the pre-built template (Relational Net Promoter Score (NPS-R)) or create a custom form:
The NPS-R is a fixed, non adjustable 11-point scale question. Answers differ from very unlikely (0) up-to very likely (10). The scale descriptions can be adjusted via the question settings:
The scores (0-10) are, by default, grouped into three categories:
Detractors (IF score is 0, 1, 2, 3, 4, 5, or 6)
Passives (IF score is 7 or 8)
Promotors (IF score is 9 or 10)
Viewing the NPS-R results
On the results page, navigate to 'Customer relationships'. All results are aggregated here under your form name.
The form results are compiled in an overview dashboard including:
Number of respondents giving a certain score
Percentage of respondents giving a certain score
Graph with the score over-time
Average score split per device and operating system
If you have added additional questions to your NPS-R form, the answers to these questions are shown on the left hand side of the results overview.
Detractors (score 0 to 6) are detracted from the promotors (score 9, 10) and divided by the total number of answers to generate your NPS score:
Promoters (9 or 10)
Promoters are loyal, enthusiastic fans and sing your company’s praises to friends and colleagues. This group is most likely to remain customer and increase purchases over time.
Passives (7 or 8)
This group is "passively satisfied" because this they are satisfied—for now. Their repurchase and referral rates are up to 50% lower than those of promoters. Referrals are likely to be qualified and less enthusiastic. Most telling: if a competitor’s ad catches their eye, they may defect.
Detractors (0 to 6)
Detractors are unhappy customers and account for more than 80% of negative word-of-mouth. Amongst this group churn and defection rates are high. Their criticisms and bad attitudes diminish a company’s reputation, discourage new customers, and demotivate employees.