What is a good Net Promoter Score? Why is NPS Important?
Would you recommend this company to a friend?
After years of research and going back and forth, and companies spending tons of time and money to figure out the perfect tool to measure customer satisfaction and behavior, it eventually boiled down to the most critical factor, which was “Would you recommend this to a friend?’’
This would directly impact the company’s growth in the majority of the industries, especially in the SaaS industry. When people speak about your company, they just don’t talk about their profitability or the value they have derived from it. Still, a significant thing to consider is that they are putting their reputation on the line, which shows the level of trust and loyalty for a company.
In today’s competitive market, companies compete for customer experience more than they compete for products. Still, the issue is that they eventually fail to understand what a good customer experience is.
With Upshot.ai, you can run micro surveys, rating requests, and NPS campaigns timely to figure out the pulse of the users and plan the strategy accordingly. Thus collecting user feedback and working on the provided feedback makes users feel essential and increases brand value with time.
What is NPS?
NPS (Net Promoter Score) is user feedback that measures the user’s loyalty to your product or brand. There are two NPS questions you can ask your users:
1. How likely are you to recommend our product to a friend or colleague?
2. What is the reason for your score?
The first question is always measured from 1–10 and is used to segment users based on answers. The second question is used to get feedback on the customer’s high or
low scores. Based on the responses from the first question, your customers are divided into three different segments:
- Promoters — Customers who answered the question with 9–10. This group is more than satisfied with your product, and they will be pleased to spread the positive word about it.
- Passives — Customers who responded 7–8. This segment is satisfied enough with your product to use it. Usually, they will not churn, but they will also not promote it.
- Detractors — Customers who replied 0–6. Detractors are customers who will likely churn and spread negative words about your product.
How is NPS calculated?
Net Promoter Score is calculated by subtracting the percentage of detractors from the percentage of promoters. A company’s NPS score can vary from -100 to 100.
For example, if you have:
- 30% detractors
- 20% passives
- 50% promoters
So, the formula for calculating NPS would be-
NPS = % of Promoters — % of Detractors
our Net Promoter Score would be 50% — 30% = 20.
Good or Bad NPS continuously varies from industry to industry. Below we are sharing the image that will give you a brief idea about NPS averages and benchmarks.
Tips to improve your Net Promoter score
- Increase awareness among your employees– It is essential to educate your employees about the importance of feedback and react to it. They need to understand that every customer matters. It is also essential for them to streamline the input achieved to the other teams responsible, as customers generally stick to companies if they feel that their feedback has been appreciated.
- Ask Questions and analyze the score from time to time– If someone gives five on ten, they should be asked why — either by getting them to choose reasons from a list, choose features they dislike, etc. or ask them to enter their options. Once the correlation between a score and reasons is understood, improving the reasons will improve the score as existing as well as new users enjoy the better experience.
- Encourage Customer feedback: Open up to customer feedback. Please don’t overlook it; instead, study and learn from it. Advise your clients to submit product or feature requests, involve them in discussions about the overall roadmap, and let them plan onboarding and support calls. Show that you listen to them and are ready to lead a productive collaboration with them.
Upshot.ai is an enterprise-based omnichannel customer engagement and gamification platform. Collecting feedback is one of the best ways to engage customers and improve your product or service. It helps you determine your customer’s loyalty towards your brand, predict churn and
retention. Gathering product feedback is essential for product success. Product managers can use customer feedback to validate their product at critical stages of the product life cycle.
You can design a survey in the Upshot dashboard which can take only a couple of minutes and be made to match your brand fonts and colors. Upshot.ai offers you multiple channels to send surveys such as NPS, opinion polls, rating requests, in-app surveys, and micro surveys. You can target specific groups of customers based on demographics or behavior. Track your survey results and download responses easily with upshot.ai.
Amway, the world’s largest distributor company, leveraged upshot.ai omnichannel micro surveys as one of the features in their mobile and web app and observed a 400% increase in monthly active users.
Zyto leveraged upshot.ai in their iOS app called “Reframe” to improve the user’s perception of personal issues. We sent rating requests to users to get their feedback and were able to experience a 43% increase in user engagement.
Schedule a demo today to know how we can help you with product success and get a personalized walkthrough of our dashboard.