Open Source Data Collection
Published at 2022-07-13

Net Promoter Score(NPS): A Customer Experience Metric That Every Business Needs

Growth is a "must-accomplish" for your business. It's a long, multi-layer, and difficult process. In this process, it's crucial to build and maintain positive relationships with your customers.

One way of doing that is to use customer satisfaction tools or surveys, one extremely popular of which is net promoter score survey.


What is NPS

Net promoter score (NPS) is a widely used customer experience metric that measures general customer satisfaction of, and loyalty to a product or service.

It generally takes the form of a single-question survey (NPS survey). However, it can also be combined with other related questions as part of a customer satisfaction survey.

The NPS question provides a scale from 0-to-10 and typically asks the question "How likely would you be to recommend our service to a friend or colleague?"

The higher rating a respondent gives for the question, the more likely that they would recommend your brand, but more importantly, the more satisfied they are with your services overall.


Why is NPS Essential

  • It gives a general idea about how well your business is doing in terms of customer satisfaction and loyalty.
  • It helps you have a clearer vision on how to plan for future improvements.
  • It can be tracked over time, which is great for continual awareness of your success rate.
  • It's quite simple both for you to create, and for your customers to respond.
  • It can be used by any business.
  • It's a globally used and accepted metric, which makes it familiar to most businesses and customers.
  • Since it's global, it's probably used by many other businesses in your niche, which means you can use your NPS to see how well you're doing in comparison with your competitors.

Scoring

Based on the standarts for NPS calculation, respondents of an NPS question are divided into 3 categories: promoters, passives, and detractors.

  • Respondents who give the scores of 9 or 10 are promoters. They're interpreted as the most loyal and truly satisfied customers of a business. They are most likely to continue using your services, and refer you to other people.

  • Respondents who give the scores of 7 or 8 are passives. They're considered to be customers that are fairly satisfied with the service, but not as enthusiastic as promoters. They are more positive than negative about your services, and very close to becoming promoters (especially those who give the score of 8). Although the likeliness is lower than that of promoters, passives may refer you to other people, and remain as customers of yours. However, they may also take a different, more negative path down the road, end their relations to your services, and even have and spread rather negative opinions about your brand.

  • Finally, respondents who give the score of 6 or lower are detractors. They're interpreted as dissatisfied customers who are most likely to regard their experiences with your services as negative. Detractors are very likely to leave, and even worse, share their negative experiences and discourage other people from becoming your customers.

By definition, we want to have as few detractors, and as many promoters as possible.


NPS Calculation and Evaluation

The calculation of net promoter score is pretty simple:

The percentage of promoters - the percentage of detractors= Your Net Promoter Score

For example, let's say %45 of your respondents scored you 9 or 10 (thus are promoters), and %20 of your respondents scored you 6 or lower(thus are detractors).

Then, your net promoter score would be: 45-20= 25.


What Does It Mean

Your NPS will be something between -100 and 100. It's crucial to have it at least above 0, as that would mean you have more promoters than detractors, which is a must for business success. We always want a positive gap between the number of customers who are satisfied with our services, and those who aren't.

Beyond that, of course, the higher NPS you get, the better.


NPS Temporal Change

Net promoter score is an easy to calculate metric, and it's a great indicator of how satisfied your current customers are with you. Plus, based on the score you get, you can have better ideas about how badly or rapidly you might have to improve your services, and what sort of steps to include in your future plans.

But that's not all.

Afterall, this isn't a metric to use just once. We also want to know whether the improvements we make on our services actually work, decrease the number of detractors, attract more promoters, and maintain them.

For this purpose, tracking the temporal change of your NPS is quite necessary.

So, it would be in your best interest to pick an NPS provider that also offers statistical analyses like temporal change.


FormPress and NPS

As we mentioned in our recent version release, FormPress now offers an NPS element for you to detect, track, and improve the success of your brand.


How to Use It

To create and share an NPS survey:

  • Find the NPS element on the editor of FormPress app, add it to your form, and enter the question.
  • Make sure there are no elements other than NPS and Submit Button (unless you want to add other related questions and turn your form into a Customer Satisfaction Survey).
  • Save, publish, and share your NPS survey with your customers.

Upload It as Widget

As an alternative share options, you can also upload your NPS survey(or any other form for that matter) to your website as a widget. Once a visitor navigates to your site, the NPS survey will pop at the right corner of their screen like a small support window.

This way, anyone who visits your site will probably see the NPS survey, and it'll be easier for you to have it filled out by as many users as possible.

To upload your survey as a widget to your website:

  • Tick the "widget" option on the share page.
  • Then copy the embed code of the form, and paste it in the html file of whatever page on which you want to show NPS survey as a widget.

Done.


NPS Statistics

As your survey collects responses, you can find certain statistics on our "Data" page.

Once you're there, simply pick your NPS survey from the list of forms, and click on "Statistics".

Here, you will have access to your NPS, and its temporal change (coming soon).


Overall, NPS is a great metric to help you keep track of your business' success, and make proper adjustments.