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NPS for Growth

Net Promoter Score®, or NPS®, measures customer experience and predicts business growth with only one question: “How likely are you to recommend us to a friend or colleague?”. This is a proven sole metric demonstrating the ability of the company to grow. NPS is a holistic metric, measuring all aspects of user experience (but also perception).

NPS is both holistic and technical meaning that you need to understand all aspects of the business, all touchpoints with customers, and then to change them. Understanding alone is also technical as the NPS score is been asked in Websites, IVR systems, Mobile apps, chatbots, email campaigns, even physical by pressing buttons.

NPS Score

The NPS Calculation

Calculate your NPS using the answer to a key question, using a 0-10 scale: How likely is it that you would recommend [brand] to a friend or colleague?

Respondents are grouped as follows:

  • 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. It ranges from -100 in the worst-case scenario (everyone gave a 0), to a +100 in best case (everyone gave a 10)

NPS score predicts your company’s growth. Why?

Better community management

Promoters are your ambassadors. If they will read something bad or unfair for you on social media they will support you in the best possible way. Make sure your promoters are following you on various social media

Less haters

Detractors easily can be turned into your brand hater responsible for bad mouthing and negative comments. That said image turning those detractors into promoters

Higher Margins

Promoters are usually less price-sensitive than other customers because they believe they’re getting good value overall from your company. 

Higher Spend

Promoters buy more, more often, than Detractors do. They tend to consolidate more category purchases with their favorite brands. Promoters’ interest in new product offerings and brand extensions also exceeds that of Detractors or Passives.

Higher Retention Rate

Detractors generally defect at higher rates than Promoters, which means that they have shorter and less profitable relationships with your company. Rescue those Detractors — turn them into Promoters — and experience higher margins.

Greater Word of Mouth

What proportion of new customers selected your brand because of something that a friend said thus a referral? The lifetime value of those new customers, including any savings in sales or marketing expenses, comes from Promoters, who account for most referrals. It’s a fact that More than 80% of happy customers are willing to provide recommendations.

Finding growth levers (for improvement)

Customers might answer the NPS question with a low score, or even a 0. It’s tough when that happens — especially if it happens more than once — but it also presents an opportunity to make product or service improvements accordingly.

Ability to reach out to detractors.

Detractors are those NPS survey respondents between a score of 0-6, indicating that they would likely not be willing to recommend your product or service to others. And just as investing in your promoters can offer dividends for your company’s growth, focusing on detractors is important, too.

What's a good Net Promoter Score

Based on the global NPS standards, any score above 0 would be considered “good” (50 and above being excellent while 70 and above is considered “world class”).

Simply put, any positive score means that you have more promoters (advocates willing to recommend you) than detractors (unhappy customers and potential negative word-of-mouth).

Now, depending on the industries, you can find different benchmarks for NPS:

  • Physical Store such as: Nordstrom have an average of 75
  • Brands like amazon and apple have an average of 70
  • Mobile operators or cable TV – A good NPS score is around 0
  • In the world of politics, a “good” NPS score, as unfortunate as it may be, is still negative.

When and where to measure NPS

As mentioned above, NPS can be measured in various mediums:

  • An email survey
  • An SMS survey
  • On chatbots
  • On IVRs (call centers)
  • After completing a transaction (order, top-up, recharge, renewal)
  • When visiting the website
  • When searching for FAQs or answers
  • On messenger bots

One or multiple NPS scores?

In the company, you may have multiple NPS based on the segment or the campaign or the touchpoint. After talking to an agent, to the call-center, to the chatbot, searching on FAQs, upgrading a service, rolling-in, signing-up, ordering may lead to different NPS. Besides NPS you may have other metrics such as stars, thumbs-ups, claps, upvotes, or various ways to collect customer feedback (Retention of the customer also signifies satisfaction). That feedback should be analyzed from specialized consultants, apply statistical formulas on them, combine with the paths leading to the feedback and predict the NPS you will get when the survey will be sent out! NPS should not be a surprise for the company.

What is affecting NPS?

NPS is been affected by many elements and parameters. A good NPS is always a balance between customer’s happiness and ROHC (Return on Happy Customers). For example, offering a very cheap service will result to a very high NPS score (assuming you will ask for the NPS at the time of completion) but in any case, it’s not a sustainable model. It’s rather a manipulative one. Another example is an IVR Service. If all calls will be delivered to live agents will lead to higher satisfaction but also to higher costs thus the effort should be in serving customers in an automated manner (NLU, chatbot), but making sure that customers will get the answers or services they ask for without waiting on the queue or having to talk with someone.

What an NPS project includes?

An NPS project includes various stages:

Auditing of current situation.

During this stage our consultants will work with the various stakeholders getting answers to various questions such as:

    • What’s the NPS score of the brand?
    • What’s the change of the score over year or months?
    • What’s the percentage of participation vs. total addressable audience? 
    • Does the brand has one NPS or multiple NPS score for specific channels?
    • What’s the happy path of the customer 
    • How the brand treats detractors and how promoters?

Measurements (Statistics)

Measurements on collected and normalized individual metrics, where we try to predict the NPS score before hitting the crowd

Suggestions for improvement

That includes all channels and touchpoints. Specialized consultants may have to further analyze NPS because there are many cases that we may not be sure where the NPS score is been derived. Thus, the company has to implement more metric-related touchpoints, change the follow-up sequences, change tone of voice, or implementing breakthrough innovations to handle it.

NPS Services by GrowthGirls

Let’s discuss on the skillset of a growth hacking team: 

  1. they are familiar with UX (VUI (for voice) or GUI (for digital)),
  2. they are familiar with digital marketing tactics and ways to approach a customer via various communication channels
  3. they are familiar with experimentation which is very important when we try to propose improvements to control groups with minimum impact
  4. they are familiar with data science (R, scripts, spreadsheets, python) that is used to analyze, compose and consolidate various metrics trying to predict NPS
  5. they are familiar with touchpoints (building, correcting, or integrating them) with various systems

As per above, it is pretty obvious that a growth hacker is your ideal NPS consultant

Are you Ready to hack your NPS?