Net Promoter Score (Part 2)

Synopsis

The Net Promoter Score (NPS) calculation is a key practice for overall customer gratification and an important customer loyalty metric. Measure your company's understanding of its customer base needs and determine their readiness to serve as advocates for your brand with our Net Promoter Score (Part 2) calculation and improvement presentation deck.

Questions and answers

How does understanding the Net Promoter Score enhance a company's customer loyalty strategy?

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Understanding the Net Promoter Score (NPS) can significantly enhance a company's customer loyalty strategy. The NPS is a key metric for customer satisfaction and loyalty. It measures the willingness of customers to recommend a company's products or services to others. A high NPS indicates that a company has earned the trust and loyalty of its customers, who are likely to serve as advocates for the brand. This can lead to increased customer retention, more referrals, and ultimately, business growth. Therefore, by understanding and improving its NPS, a company can effectively strengthen its customer loyalty strategy.

What are the main components of the Net Promoter Score calculation?

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The main components of the Net Promoter Score (NPS) calculation are the Promoters, Passives, and Detractors. Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth. Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings. Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth. Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score.

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Slide highlights

Use services like Survey Monkey or Google Forms to initiate a customer satisfaction survey. Categorize survey responses as "Detractors," "Passives" and "Promoters" and fill out total responses for each category.

To calculate these by percentage, divide the total number of responses in each group by the total number of survey responses. Then, subtract the percentage of Detractors from the percentage of Promoters to get the NPS.

There is always room for improvement when it comes to customer satisfication. There are steps you can take to boost the company's likability and improve customer loyalty, which we will explain in more detail below.

Implementation

1. Bring everybody on board

It takes a village to make unhappy customers happy, so ensure that your whole team understands the end goal and is willing to pitch in.

2. Make your brand promotable

It is your job to make it as easy as possible for your customer base to promote your brand. To succeed, inspire your clients to share their positive experiences on social media by asking questions (in Instagram Stories Surveys, for example), initiating engaging contests and interacting with them sincerely and regularly.

Questions and answers

What role does customer gratification play in brand advocacy?

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Customer gratification plays a crucial role in brand advocacy. When customers are satisfied with a product or service, they are more likely to recommend it to others. This word-of-mouth marketing can be incredibly valuable, as it often carries more weight than traditional advertising. Furthermore, satisfied customers are more likely to become repeat customers, which can lead to increased revenue for the business. Therefore, focusing on customer gratification can lead to a stronger brand and a more successful business.

How can contests be used as a tool for brand promotion?

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Contests can be an effective tool for brand promotion as they can increase brand visibility and engagement. By offering attractive prizes, brands can encourage customers to participate in the contest and share it with their network, thereby increasing the brand's reach. Contests can also be used to collect customer data, which can be used for future marketing efforts. They can also help in creating a positive image of the brand as they provide an opportunity for customers to interact with the brand in a fun and engaging way.

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3. Do not disregard detractors

Your promoters can offer a lot of valuable feedback, so reward them with gratitude and by giving them a voice (or other perks), but do not ignore your detractors. Your best strategy is to find out what went wrong and what you can do to fix it. Detractors will often give you valuable feedback and spark ideas for improvement. Remember that communication is king when it comes to customer loyalty, because when your customers know you as a responsible and responsive brand, they are likely to stick around and promote your brand through the most effective marketing tool known to men–word of mouth.

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Case study

The leading full-cycle automation solution provider, Kryon, had recently revealed its latest Net Promoter Score (NPS) of +68. The latest Kryon NPS score is quite impressive and surpasses the company's prior score, which was already above average at +61.

Kryon was able to achieve the rapid spike in customer satisfaction thanks to the company's avid investment in customer support and its open and continuous dialogue with its customers on bettering their experiences.

Chief Customer Success Officer at Kryon, Ohad Barnoy, explained: "RPA is all about relentless improvement, and Kryon not only builds that into our products but we make it a core value of our company. The seven-point boost in customer satisfaction is a testament to the hard work and commitment of our customer success and professional services teams." He added: "They never stop finding new ways to improve the customer experience of Kryon's Full-Cycle Automation Suite. We will continue to strive for even higher levels of satisfaction in the months to come."

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