NPS Score (Net Promoter Score):
NPS score is defined as Net Promoter Score which is used to check an organization’s health by calculating the customer experience with the service. The NPS survey can be measured on a rating scale of 0 to 100 to know the customer satisfaction status based on their service experience.
The NPS Score And Survey Consists Of A Single Question Only:
NPS score is a process of calculating results from the survey of customers by asking the question, “How likely are you to recommend our product/service to a friend or colleague?” The customer responds to it by giving the answers on a rating scale of 0 to 10 and after collecting the data from them, they are categorized into the below categories.
The NPS Score Is To Be Measured On 3 Basic Factors Which Are As Below:
1. Promoters (Rating scale 9 to 10):
Promoters are those enthusiastic customers which are fully satisfied with the overall service provided by the organization. These customers give numbers 9 or 10 on the rating scale of 1 to 10 which helps to improve the NPS Score. These customers are supposed to strongly promote your business to other people by recommending them to try at once for the best service experience.
2. Passive (Rating scale 7 to 8):
These kinds of customers are satisfied with the given services but not happy to promote your business like Promoters. These customers rated their experiences on a scale of between 7 to 8. They are totally satisfied with the services but due to delay at the billing counter, not getting an offer as per expectations are some of the reasons for being passive.
3. Detractors (Rating scale 0 to 6):
Detractors are those customers who are not at all happy with the services provided by a business organization and they will rate you from 0 to 6. These customers are unsatisfied with the service experiences offered by the business organization.
These are called detractors because they will never promote your business but they will lose your upcoming customers also. Detractors will suggest to other customers about their past service experience and they will advise and discourage them from buying.
Related article: Convert customers into sale
How NPS Works?
NPS Score is calculated by collecting feedback from the existing customers about the products and services offered by the business organization. In this NPS survey, the customer received SMS on their registered mobile and after clicking on the given link they have to rate on a scale of 1-10 to identify their opinion about the business organization. NPS plays a very important role in the growth of business and built-up trustworthy business strategies.
How To Calculate NPS Score?
The final NPS score can be calculated by subtracting the percentage of detractors from the percentage of promoters.
Final NPS Score= % of Promoters – % of Detractors
Suppose, 60% of the customers are promoters, 20% customers are passive and 20% customers are detractors then the Final NPS Score will be 60-20=40
How NPS Score Effects On An Organization?
NPS Score is very much important from the CEO of an organization to the front linear staff. It covers Product knowledge of the staff, staff approach, offers and discounts, marketing, finance and everything related to service.
Components of NPS:
1. Product Knowledge And Staff Engagement:
The knowledge about a particular selling product is an essential thing for the staff because they spend their maximum time with customers to discuss the product and offers related to it.
The customer needs assistance from the staff to collect a piece of information and he is going to buy that product after getting satisfying answers from the staff. Front linear staff is the first point of contact for every customer so try to provide correct and necessary information about product, services and payment options politely. This will help you to engage your customers with you and your business organization. One negative point could be lost your NPS Score.
2. Improve Sale Closing Techniques:
Approach the customer and greet him with a smile. Ask them about the requirements and suggest a product to them as per their need. Guide the customer about all ongoing offers on that product so the customer will engage with you. Inform them about the offers and services once again after finalizing their products. Don’t forget to guide them about your customer care no. because it is the one point of contact for customers.
This process will help you to improve the customer experience at the workplace which will improve your NPS Score.
3. Customer Service Support:
A strong and organized team for customer support is very much important to solve the queries of customers. The team should be capable of handling customer’s objections and providing them with the required solution as early as possible.
The service experience part plays an important role in the NPS Score because the overall summary of the NPS Score depends upon the customer service experience so treating your customers with proper guidance and solutions will help in the growth of the NPS Score.
How The NPS Survey Questions Are Helpful?
The NPS Surveys are specially designed for customers to know their opinion about services offered by the employees. The NPS score is helpful to know the business health and its drawbacks so that the team could improve their business strategies and development according to the customer’s given feedback.
Advantages Of NPS Score:
1. It helps in understanding the market trends:
NPS Score and survey helps to show the results of loopholes and gaps between services and staff management. NPS is a simple process of taking feedback from customers by asking simple questions but the result which comes from it indicates the direction for growing the business very well. Because your existing customers could because your loyal customers after increasing customer’s satisfaction level.
2. Know your competitors:
Business organizations can compare their NPS score with others also. The competitive analysis will help to identify your gaps and loopholes in the services. This is a healthy competition to compete in the market by identifying business strategies.