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Net Promoter Score definition IN SIMPLE WORDS

Written by Alissa Taggart
1 min read

– Everybody, Alissa here, I’m gonna go over Net Promoter Score Survey with you. It’s a different type of survey that’s become very, very popular amongst many different companies across the world. It’s basically a benchmark that loads of companies use across industries to see how their company is doing. Okay, so let’s start. Essentially this is what the Net Promoter Score Survey looks like. It’s just one question, it’s very straightforward. What they’re trying to do through this one question is determine two things. One, is your customer going to purchase again from the company? And two, would they be willing to refer or recommend this company to a colleague or friend? This is extremely important because word of mouth is crucial in this day and age. The reason why word of mouth is so important is because it spreads like wildfire across many different social channels such as Twitter, Instagram, Facebook. With the click of a mouse you can see someone’s opinion, whether it’s good or bad, about a company within seconds. And so it’s really important that companies or our clients are understanding what it is that their customers think or feel about their company to understand if they’re doing well or not. So basically the way it works is the answers are broken down into three different parts, so as a customer answering this survey, you fall into one of the three categories. The first is a detractor, anyone who answers from zero to number six is considered a detractor. Basically what this means is they are very unlikely to repurchase from your client or the company. And it’s very unlikely that they would every recommend them to a colleague or friend. Definitely not a great score to get, but it does happen. The next breakdown is passive, that’s anyone who answers with a seven or an eight. Basically these people aren’t really overly impressed with the company, they’re neither here nor there. It’s likely that they would be swayed by other competitors, and by a better offer, or anything like that. It’s not that they’re unhappy, it’s just that they were just satisfied. Again, they weren’t impressed. On the other end of the spectrum, nine and 10, if a customer answers with one of those number, then they’re considered a promoter. This means that it’s very likely that they’ll be repurchasing and also highly recommending your client or your company to all their friends and family. And so this is kind of where every company wants to be at, however doesn’t always happen, again. So why this is important is not only does it give you a good idea of whether the customer will repurchase and also recommend you, but this is also a benchmark that’s used across multiple different industries. Essentially what Net Promoter Scores do is they’re kind of gathered together, and then within an industry, there’s an average Net Promoter Score that your clients wants to fall at in order to consider that they’re doing a good job. So for example, within the, let’s call it agricultural industry, if you have a client that has a Net Promoter Score of a 56 but the average in that industry is a 68, then you know that they’re falling behind benchmark. However, if they have a Net Promoter Score of 56 and the average in their industry is 43, then you know that they’re doing very well within their own industry. So this is a great article to read through. I’m sure this will get added into the account manager training. It breaks down into even more detail everything that you need to know about Net Promoter Scores. What I’m gonna go through is just what it looks like, a calculator that I briefly created, and then also different examples of how to incorporate the Net Promoter Score Survey into surveys moving forward. So this is effectively what it looks like, exactly what I just showed you on the other page. These are the other two types of surveys that we typically deal with which is the Pre-Purchase Survey Questions, and then also Post Purchase Survey Questions within those two separate flows. But then also the Net Promoter Score Survey is something that can be incorporated into both flows. The Net Promoter Score Survey can also be incorporated into different touchpoints that you have with your customer throughout their customer lifecycle essentially with you. So depending on what your client is asking for, this is a question that can be used at the very beginning when they’re just starting out with the company with regards to the purchasing funnel, or at the very end, throughout different touchpoints in the middle. Again, that’s something that you can discus with your client. Now, in order to calculate your Net Promoter Score, basically what happens is over the course of time you have the survey, and let’s say for example you have 100 people that respond to the survey. Now, the only thing that gets taken into account for your NPS score are the number of detractors and promoters because again, passive people don’t really count in the grand scheme of things because they’re neither here nor there. What you want to focus on are the people that are very, very happy that you can capitalize on and make sure that they’re providing a good name for your company. And also you want to work on the detractors because they’re people that you want to kind of win over or have a strategy for improving later on down the line. So out of the course of 100 respondents, let’s say 30 of them are detractors, which means that 30 of them answer between a zero and a six. And then the other 70 are your promoters, and they answer a nine or a 10. So what would happen is the detractors get subtracted from the promoters, and then that gets divided over the respondents, times 100 is the technical calculation for it, and then in this case, your NPS score would be a 40. Now, you look at that number and you think, “Wow, 40 doesn’t really sound good out of 100.” However, again within your industry, if the benchmark for example in this industry for this particular company is a 30, a 40 is an excellent score. But again, if the benchmark within that industry is a 60, there’s something going on. Okay, so the different methods to use the Net Promoter Score in a survey. These are a few templates that SurveyMonkey utilizes or gives as examples. So first example is here. So you hit Extremely Likely and then it automatically goes to Next. And then you have more components to the survey. This is useful because one of the biggest cons about the Net Promoter Score Survey is that is doesn’t really pinpoint or give you detail as to where your client or the company is kind of falling short. So if someone was to answer with a one, that’s all you would get is just the number one, there’s no other further questions, there are no reasons why they got the one, or why they answered the one, and so that’s why a remaining survey is important. So it’ll ask further questions that give you a little more background for why they made the answer that they did. Okay, so another example is this is their Customer Service Survey Template. So the other thing that you can do is you can embed the NPS Survey into the middle of the survey. So then that way you’re still also getting the NPS score, but then also again getting lots of feedback and lots of background as to why they’re answering the way that they do. This I think is probably my favorite method just because it kind of guides the customer into that question rather than just giving them this, and then that’s all they have to work with. Okay, and then the last one is the Customer Satisfaction Survey Template. Again, it’s a little different than the initial one that I had shown you, but it’s still essentially the same thing. So the first question is the NPS Survey, and then it goes into further survey questions. Another thing that the SurveyMonkey article suggests is embedding the NPS Survey question into an email. What they found is that there was a significantly higher rate of participation from customers, I think it was 22% higher than if you had just incorporated it in a normal survey. So that’s also an option to creating an NPS Survey email that goes out, and then as soon as a customer clicks on their score, then what it does is it links them to a separate survey that gives them followup questions. So that’s also an option as well. Okay, if you have any questions, feel free to follow up, but again, this article is very, very useful and definitely a helpful resource to use.

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