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What is NPS®? And how do you calculate NPS®?

In this article you will find out…

- What NPS is
- How to calculate your NPS value
- What the feedback looks like after an NPS survey

Quicksearch has been conducting relationship surveys for over 20 years and are experts in statistics, survey methodology and analysis.

Do you want to know what NPS - Net Promoter Score® is? How to calculate NPS? And what NPS can mean for your particular company? Do you perhaps want to identify your dissatisfied customers and find your extremely satisfied ambassadors?  

With NPS you find out how your customers perceive your company. The method is one of the best for analyzing your brand, product or service. We start by answering the question – What is NPS? NPS provides an answer to the question "to what degree are you willing to recommend x to a friend or colleague" which gives a key figure on the number of critics (detractors) and the number of ambassadors (promoters). NPS is today the most useful method for measuring loyalty and acting towards the respondent. In addition, it shows the true loyalty of customers/employees.

By applying NPS, it is possible to find out which customers are ambassadors and get them to help along the way. You can therefore ensure that the best customers help spread the brand through recommendations. Read more about the story behind NPS - Net Promoter Score®.

How to calculate NPS?

Now comes the big question, how to calculate NPS? NPS is a simple survey method where the customer answers two short questions, usually in a survey:

  1. How likely is it that you would recommend our brand/product/service to a friend or colleague?
  2. What is the main reason for your answer?

When you have completed the survey, based on the answers, you can calculate the NPS value as follows: (number of ambassadors - number of critics) / (number of respondents) x 100
The NPS value can vary depending on the industry, product and process.

nps

How do you get back to customers after an NPS survey?

NPS is not only a research method, but must also be seen as a way of working with the results. A large part of the work lies in what happens after the customer gives feedback. Central to the method is the fact that if you offer your customers to like, an expectation is created. And then it is important to respond to the customer's feedback in a relevant and good way, regardless of whether it is from a critic or an ambassador. If you get back to a dissatisfied customer and have the desire to correct a problem, you will definitely go a long way on the road than your competitors. Some tips you can keep in mind when conducting an NPS survey are the following:

  • Tonality - the content and form of the survey should suit your company so that customers can recognize you. Feedback after feedback must be personal - it must be clear that you have taken the feedback to heart.
  • Feedback after feedback must be personal - it must be clear that you have taken the feedback to heart.
  • Never send standardized responses – this can, if the customer sees through this shortcut, have the opposite effect.

Which NPS has ambassadors, critics and neutral customers? And how important is the feedback?

An important point when conducting an NPS survey and feedback on customer feedback is that you really show your gratitude. Whether you are responding to a critic or a neutral customer, it is very important that the response is positive so that you clearly show that your relationship is important. The feedback must take place as soon as possible and preferably within a couple of days.

Example of feedback after an NPS survey

  • Ambassadors - Nurture the relationship with your ambassadors by thanking them for being satisfied customers and humbly suggesting that they tell others about you.
  • Neutral Customers – Basically, neutrals are happy customers, but there is something small that stands in the way of them becoming ambassadors. Take advantage of and respond to their feedback and create a relationship with them where you e.g. asking if there is anything you can improve. Show a desire to improve and suggest that they tell you more about what you can do. Customers often have a clear picture of how they want an ideal supplier to act.
  • A critic – Negative feedback doesn't always have to be bad and even though the customer is dissatisfied, they have responded to your survey. Respond to the feedback in a positive way and find out what problem they experienced with your product, service or service. There is usually a lot to be learned here if you humbly ask the customer to tell you, compare with competitors, etc. Of course, it can feel difficult to deal with an unsatisfied customer, but the challenge lies in really wanting to provide better quality.

Summation

There are different opinions about the purpose of doing ongoing NPS measurements. The method should be seen as a way of working to retain customers and create more ambassadors. Because growth is created if we retain and save back customers that we risk losing while at the same time we sell more through customers who really like us and spread a positive reputation. Working in this way is fundamentally common sense, and Quicksearch therefore recommends performing ongoing NPS surveys. If you want to get better at navigating the customer relationship correctly, ongoing feedback with NPS is something for you.

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Writer

Victoria Stenholm

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