The NPS score is a well-known metric that measures the willingness of customers to recommend a company’s products or services to others. With only one question to the customer, response rates are usually higher than a more elaborate survey.
What is the NPS score?
NPS stands for Net Promoter Score. It is the easiest way to measure customer loyalty. It is measured according to your customers’ answers to the question “How likely is it – on a scale from 0 to 10 – that you would recommend our customer service to a friend or a colleague?”.
Your customers are then divided into 3 categories: promoters, passives and detractors. Promoters score very high (a 9 or a 10). They are very likely to recommend your company and are your most loyal customers. Passives rate you at a 7 or an 8. They are recurrent customers that are susceptible to competitive offers. Detractors give you a score of 6 or less. They are not satisfied with your services and can damage your brand image.
Your NPS score then gets calculated by subtracting the percentage of detractors from the percentage of promoters. Your NPS can range from -100 to 100.
How to send out the surveys to get your NPS score?
For your NPS score to reflect the reality, you should try and get the highest response rate possible. The more answers you get, the more accurate your NPS score will be. Response rates are determined by a lot of factors: sending date/time, willingness of your customers to give you feedback, the copy of your survey, the channel you use to send your message and so on. But your industry or communication habits can also influence the response rate.
Our experience tells us that automated calls give the highest response rate. This response rate varies from an average of 20% to 40%. SMS is in second position, with an average response rate up to 25%. For some companies, email also offers a good chance of success.
In order to determine which channel gives you the highest response rate, we would recommend to conduct an A/B test. Once this element is set, you can also test the other factors that can influence your response rate. Try different sending dates/times or link them to events. For example, if you want to evaluate the quality of your customer service, you could try to send your NPS survey right after the customer places a call to your company.
How to interpret the NPS score?
It is nice to know your NPS score but you also need to know how to interpret it. The NPS measures your loyalty by asking how likely your customers to recommend your brand and services. The answer will be different depending on the market you are in, but also on your location. In fact, your customers’ culture and the type of product you sell will influence the results you receive a lot.
Ideally, you should compare your NPS score to your industry’s average for the same geographical area. You will find that it is quite difficult to get such specific information. Our advice would be to keep in mind that a low NPS score is not necessarily bad, it can reflect culture or habits more than your actual performance. What you can do, however, is trying to improve your score. Let’s say you start with an NPS score of two. You can set an objective to increase it to five by the end of the year, for example. The numbers appear very low, but you also follow the evolution of your score and so measure how loyalty evolves.