How you can increase the customer experience?
Find out with the NPS

The NPS is a key figure that measures how high the willingness of customers to recommend a company is. In other words, how satisfied customers are with a service, a product or a company.

Other methods for quantitatively measuring customer satisfaction, in addition to the Net Promotor Score (NPS), include the Customer Satisfaction Score (CSAT), the Customer Effort Score (CES), and the Things Gone Wrong metric (TGW). 

Satisfied customers are more likely to recommend vendors, products, and services to others, have higher price tolerance, and ultimately bring your company more revenue.

Customer satisfaction is a key economic success factor for your business. Therefore, it is wise to consider this indicator as a control variable. 

The following correlations can also be found between the level of NPS and the following variables: Sales, upsell rates, actual referrals made, repeat purchases, and contract cancellations/churn rates. 

The Net Promotor Score is a simple method to determine satisfaction and provides transparency along the entire customer journey. It also enables targeted communication and helps identify multipliers. It shows strengths and weaknesses of your offer and enables comparison with the competition.

Before you start with the Net Promoter Score measurement, you should define exactly which construction site you want to address with the survey and at which touchpoints of the customer journey you want to reach your customers.

It is important that you define the goal and then think about a concept.

If you need to convince a higher level of management to implement a Net Promoted Score measurement, do it with numbers.

The NPS can and is used within the customer journey at different touchpoints. For example, after the consultation, after the purchase, after contact with support, after a complaint, etc. For a first big overview, it can make sense to query the customer’s touchpoints.

As you already know, the NPS measurement always includes the question about the tendency to recommend on a scale of 0 – 10. The query is usually made via e-mail, on the website in a pop-up or in the confirmation page after the purchase.

Here, 10 stands for the highest probability of a recommendation and 0 for the lowest.

The Net Promotor Score is calculated from the number of promoters in percent minus the number of detractors in percent. Accordingly, the NPS always has a value between -100% and +100%. Whereby -100% is the worst possible result and +100% the best possible result.

To be honest, the question of what a good NPS is cannot be answered across the board. Generally speaking, a Net Promoter Score that is below 0 would be an indication that your company has a lot of problems to solve.

A score between 0 and 30 is a good range, but there is always room for improvement. If your NPS is higher than 30, it would indicate that your business is doing well and has far more satisfied customers than dissatisfied ones.

An NPS above 70 means that your customers love you and are likely to recommend you very often. The higher the NPS, the more likely it is that new leads and more sales will be generated from customer referrals.

Take meaningful action from the NPS survey, rely on teamwork to increase customer satisfaction, engage in dialogue with your customers, learn more through targeted customer surveys, and use multipliers.