Net Promoter Score, or NPS, is a key metric for measuring customer satisfaction with a brand. In fact, absent any other metric, NPS can give organizations an understanding of where they stand with customers and the broader market. This post will explore what NPS is, what goes into determining NPS, and how customer support teams can positively and negatively impact net promoter score.
There are a few factors that go into determining net promoter score. First, companies need to have a clear understanding of their target market. They need to know who their customers are and what they’re looking for. Second, companies need to have a strong product or service that meets customer needs. And third, companies need to provide excellent customer service.
What is NPS?
Net promoter score (NPS) is a metric many brands use to calculate customer satisfaction. NPS is determined by asking customers one question: “How likely are you to recommend our company/product/service to a friend or colleague?”. Respondents are then placed in one of three categories: Detractors (0-6), Passives (7-8), Promoters (9-10)
How is NPS Calculated?
We calculate the net promoter score by subtracting the percentage of detractors from the percentage of promoters. So, if 50% of respondents said they would be likely to recommend the brand and 20% said they would not be likely to recommend, the net promoter score would be 30%. A net promoter score of 50% or above is considered good. Anything below that indicates that more work needs to be done to improve customer satisfaction.
Determining NPS
The best way to get customer feedback is by asking customers directly after they’ve interacted with the company. It’s important to survey customers soon after they’ve interacted with the company so that their feedback is still fresh in their minds. Companies can also use social media listening tools to track what customers are saying about them online. Listening to what customers are saying on social media can help companies understand which aspects of their business need improvement.
And finally, companies can track customer churn rates. The churn rate is the percentage of customers who discontinue their relationship with the company. Measuring churn rates can help companies understand which customers are unhappy and which may need more attention.
Customer Support and NPS
Customer support teams can impact net promoter scores in a number of ways. First, they can provide prompt and efficient help to customers experiencing problems. This will help to resolve issues quickly and improve satisfaction levels. Second, customer support teams can proactively reach out to customers to offer help and advice. This proactive approach can prevent problems from occurring in the first place and further improve satisfaction levels. Third, customer support teams can track and report NPS data to management. This will help management to identify areas where they need to make changes in order to improve customer satisfaction.
Connecting NPS to Company Growth
NPS is a good starting point for assessing customer satisfaction. This metric can provide important insights into how customers feel about a company or product. Even if your company is new and has few customers, it is never too early to start tracking where you stand with NPS. Improving your NPS over time will lead to the types of business behaviors that thrill customers time and again. In turn, that creates a virtuous cycle for your business: happier customers returning to buy again and again.
If your customer support team is not helping your NPS improve, we would love to chat with you. wrrk provides USA-based customer support and service solutions for eCommerce brands eager to grow. Our team of Pros can help make every support interaction a positive experience for even the most complicated customer. Contact us here to discuss how great customer support from wrrk can lift your NPS.
