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How to calculate NPS?

The NPS Question

In addition to being effective, the NPS is an indicator that is easy to understand and implement, because it simply answers a universal question .

“On a scale of 1 to 10, how likely are you to recommend this brand (or product) to your friends and family?”

NPS categories

Depending on the answer to the above question, the customer can be classified into one of three categories.

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The NPS, a score that is easily calculated

Calculating NPS is done by subtracting the number of detractors from the number of brand promoters .

How to interpret your NPS score?

Depending on whether the brand has more promoters than detractors or vice versa, the NPS score can be positive or negative . Therefore, a score above 0 is considered fair . Below this, it means the company has more detractor customers than advocates, which is alarming . A “good” score is above 50 .

However, the NPS needs to be contextualized . Indeed, depending on the sector, a customer is more or less likely to be severe in their rating. Take the example of automobiles or technology. These products, like entertainment products, are generally highly valued by consumers. Conversely, public transportation or banks are mostly judged more drastically.

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Increase your NPS

The goal of NPS is to analyze customer satisfaction performance and increase it. To do this, you need to act in different ways depending on the person you are talking to.

Detractors

Typically, critics have had a bad experience that prompts them to rate negatively . So it's important to follow up directly with a question seeking to uncover the nature of the problem, and even correct it if necessary.

Understanding the detractor's disappointment is essential , because a dissatisfied customer generally has a specific reason , easy to determine, and therefore to change.

Neutrals

Because they lack negative (or positive) feelings, passive customers often have a harder time expressing their points of friction with the brand. Therefore, it's important to listen to them carefully to understand them. Open-ended questions are very useful in this case, allowing them to guide their own thinking.

Promoters

Promoters, proud ambassadors of the company, may feel a need for recognition . It is then appropriate to create and value a close relationship , by rewarding them to build loyalty (VIP status, private sales, discounts, etc.).

The right time to ask for NPS

The questionnaire is generally sent by email , which requires having a clean and up-to-date database.

You have to choose the right moment, and choose it in a timely manner. Depending on the type of reaction you're trying to achieve, there are several options.

“Hot” reaction

If you're asking about the customer experience at the point of sale, it's best to get a quick response. Usually, the questionnaire is sent the next day , so that the customer has the details of their in-store experience fresh in their minds.

“Cold” reaction

If we are rather asking about the customer's satisfaction or their specific attachment to the brand, then it is more effective to give them a few days to measure the real impact of their experience. Thus, it is customary to ask on D+8 . If they are still impressed after a week, they will probably recommend the brand.

The NPS in brief

• NPS is a powerful customer satisfaction indicator
• It is obtained by asking the question “On a scale of 1 to 10, how likely are you to recommend this brand (or product) to your friends and family?”
• The calculation of NPS is NPS = % promoters - % detractors
• The result obtained is divided into 3 categories of customers: promoters, neutrals and detractors
• The NPS must be contextualized ; depending on the sector, it is on average more or less high
• To increase your NPS, you need to adapt your response based on the customer category
• You need to adapt your NPS form sending time depending on whether you want a “hot” reaction for the in-store customer experience or a “ cold” reaction for customer satisfaction and loyalty .

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