TELEPHONE 01206 625222What is Net Promoter Score?
Net Promoter Score (NPS) surveys are a cost effective and timely means of collecting concise data relating to how your customers feel about the overall service that you deliver. NPS surveys are very straightforward and easy for customers to understand, as they are generally comprised of one question:
'How likely is it that you would recommend [company/product/service] to a friend or colleague?'
This is measured on an 11-point rating scale, ranging from 0 ('not at all likely') to 10 ('extremely likely'). This question can be followed up by an open-ended request for elaboration to provide verbatim responses, with the aim of predicting customer loyalty or identifying areas for improvement.
NPS can have a tangible, measurable impact on businesses when conducted effectively. In 2005, the London School of Economics conducted a study that found a correlation between NPS increase and revenue growth - an NPS increase of 7 points equated to 1 percent growth in revenue.
NPS surveys are also advantageous for businesses because they demonstrate to customers that your business values their opinion, and due to the concise nature of NPS surveys, they are not required to expend a great deal of time and effort into completing a long-form questionnaire. In addition, sharing the NPS score with your employees provides an unambiguous number that allows the creation of targets for improvement within the workforce.
We are an experienced NPS survey provider. Our surveys use simple data analysis so that NPS results are grouped into three tiers:
These are the respondents who rate your business as a 9 or a 10. This means that they would recommend you to a friend or colleague, and are therefore advocating on your behalf. They are also more likely to engage with your business by buying more, and remaining customers for longer. For example, customers who have an excellent experience with a brand in comparison with poor or very poor experiences are 4.5 times more likely to pay a price premium for a product or service.
These are respondents who score between 7 and 8. These are people who are not necessarily promoting your business, but they do not view it negatively either, and are sometimes referred to as 'passively satisfied'. This is because the Passives group is moderately satisfied, but may defect to a competitor if they view an advert or hear a favourable recommendation from a Promoter of another business. As a result, they do not count towards the final NPS.
These are respondents who give your business from 0 to 6. They may have had a poor experience with your business, and therefore would not recommend it, or would actively encourage others not to buy from you. They have high churn and defection rates - research has shown that after a negative experience with a brand or company, 22 percent of consumers cut their spending with a company, while 19 percent stop buying from the company completely.
At Mackman Research, we believe that NPS is a key method of tracking the opinions of customers towards your brand. It is the voice of the customer, and results have shown that companies that create sustained value have Net Promoter Scores two times higher than the average company.
Our NPS surveys can be conducted via online or telephone data collection methods. Alternatively we can collect NPS face-to-face as street polls. We then calculate NPS by conducting methodical analysis of all scores to deliver a clear and concise overall NPS.
As a rule of thumb, a score between 0 and 30 is a positive range to be in, but presents opportunities for change. Anything higher than 30 is an indicator that the majority of your customers are Promoters. However, the gold standard is an NPS of +70, which shows that your customers are actively recommending your products, services or brand. In essence, the higher your NPS, the better.
To understand the implications of your NPS score, compare it against your competitors within your industry, around your geographical area, and any previous scores gained by your company. At Mackman Research, we strongly recommend that NPS surveys are conducted regularly to provide a benchmark for measurement.
Talk to us to find out what the best method of NPS data collection is for your business or organisation.
At Mackman Research, we are a regular NPS survey provider for a number of our clients who have commissioned our services annually. These are typically implemented using either online, telephone or face-to-face data collection methods. We also offer supplementary telephone calls for online NPS surveys to increase the response rate. When conducting telephone calls, our researchers are approachable and friendly in order to build a rapport with respondents and represent your company in a professional manner, and our expertise ensures that we get great response rates.
As with all of our projects, we like to get to know our clients and their organisations so that we fully understand your aims and objectives. We also go the extra mile by flagging any issues or unprompted responses from your customers, so that we ensure your service standards are enhanced by the research process.
NPS results can be taken on their own, or in conjunction with a larger project. We can also incorporate NPS questions into comprehensive surveys such as customer satisfaction and brand awareness. By taking NPS as a starting point, we can offer recommendations for actions that will boost your NPS.
We understand that you may have specific requirements and are happy to provide you with findings and presentations that are easy for you to use. Working with you as an NPS survey provider, we will identify your unique needs and help you to get the very most out of your project.
If you would like to conduct a NPS or a broader, more in-depth survey, contact us to discuss all of your research needs.
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