Net Promoter Score is typically seen in the form of the question asking respondents the likelihood of recommending the business, product, or service to other people. It is popularly used to gauge the growth potential of a business and its awareness.
Fred Reichheld developed NPS as a metric that is simple to use. Dividing the respondents based on the score given by them into “Promoters” (ratings 9 or 10), “Passives” (ratings 7 or 8), and Detractors (rating 0 to 6), NPS helps a company identify who their loyal customers are.
Understand the good and bad NPS
Before you begin to analyse the NPS score and take action against it, you need to have a clear understanding of what your Net Promoter Score means.
- A score below 0 indicates that you have many unsatisfied customers. It means you have more detractors than promoters.
- A score between 0 and 30 indicates that your business is doing better but there is still a lot of improvement required.
- A score between 30 and 70 indicates that your business is performing well in the market and your customers are highly satisfied.
- A score above 70 is something that most businesses strive to achieve. It indicates that your brand is at the top with the majority of your customers turning into brand advocates.
The Net Promoter Score can change depending on the volume of your customers. While you may have gained a high score, you need to know how to interpret your NPS.
Effective Ways to analyse Net Promoter Score
Demographic data to Segment your Audience:
NPS surveys can help you in identifying different demographics of your audience and segment them for better understanding using a survey software. You can integrate your survey software with your CRM and collect demographic data on your audience.
Separating customers based on demographic data – age, gender, education. Location, income, etc., – can help you identify which group has more Detractors or Promoters. It can further help you determine how you can appeal to the segment. You can personalize the targeted marketing and customize their experience.
Follow up with Open-ended question:
NPS questions may not provide you the reason behind their response. Using open-ended questions to follow up and categorizing the responses can help make more sense of the score.
The simple question “What is your reason behind the score you gave us?” can tell you how to improve your performance. This is called Verbatim Analysis.
You can use your Survey Software to categorize the responses into topics like Usability, Friendliness, or Functionality while also tagging them with the sentiments such as positive, neutral, or negative.
You can use VoxcoSurvey Software to set up an automated analysis for the categories. There are two ways you can use the automated tool:
- Determine the categories you want to analyse and the algorithm will sort the responses into the predetermined categories
- The algorithm itself searches for reiterating themes in the responses and categorizes them.
Using Verbatim Analysis can offer your insight on the NPS score given by your customers. You can understand – what your company is doing well and what needs improvement.
Using open-ended questions offers you a context for the NPS score you have received. Categorizing the responses helps quantify the score and offers insights that can help you make decisions to improve your company’s performance.
Identify Root Cause:
Identifying the root cause will make it much easier for you to understand the sentiment, thoughts, and actions of your customers. It will help you establish a strong bond by improving their experience. As a result, you will also gain loyal customers and clients.
Root cause analysis can be performed by identifying the correlation between the recurring themes in the NPS scores over time. You can measure the frequency of the categories repeated on all the NPS conducted at a specific time period.
Ensure you have enough data from at least 10 NPS surveys with at least 500 open-ended responses. Use your Survey Software to identify the categories repeated in the responses.
Analyse Trends Over Time:
It is important to keep up-to-date with the trends in customer behaviour and opinion over a period of time. It is better to send NPS surveys every quarter and compare the results to ensure that whether the trends are on track or changing.
Commercial companies may send their audience an NPS survey after every purchase. This can help the company assess the sentiment of the customer after the purchase, their experience, and their attitude about the brand.
Sending NPS surveys systematically and collecting responses can help identify the changes in real-time using a customer experience tool. You can understand how well the customers are responding to the products, services, usability, or functionality. You can understand what your customers feel about your price range, the customer service teams, the means of communication, etc.
NPS can help you determine the real change in trend. If the score increases or decreases several times, it is a clear indication that the change in trend is real.
Tip for NPS Score Analysis
Don’t compare NPS scores from different geographical locations
Comparing the NPS score helps identify the issues. But it does not mean you need to compare NPS scores from different locations.
Responses from customers often differ based on the culture and location they live in. You need to dig deeper into the culture and region to understand the reason behind the different scores.
It could be that the audience of a certain region is more open about their opinion and does not shy from showing their dissatisfaction. While the audience of other regions tends to be conserving about their opinion and ends up giving a neutral score.