Product net promotor score (NPS)
- Michael.Craddock
NPS is a helpful way to establish a baseline of customer satisfaction of your product or service. By regularly measuring the NPS you are able to establish a longer view of satisfaction and connect it to changes you are making — thus establishing ROI for initiatives.
It’s best practice to focus on the relative change in your NPS score over time, rather than an absolute number. Work to make your NPS higher than it was last week, last month, or last quarter!
There are two categories of NPS surveys to consider: transactional and relational. While each can be run independently, combining these two survey types can be a powerful way to gather a complete picture of your customer experience and loyalty.
Transactional NPS surveys focus on collecting customer feedback related to a specific experience
Relational NPS surveys seek to measure your customer’s relationship with your brand or product overall
Measuring NPS
measures the likelihood that your users would recommend your product to a friend.
a good measure of customer satisfaction and loyalty. A high NPS suggests that your users are happy enough with your product—and the experience it provides—to recommend it to someone they know. This activity shouldn’t be interpreted as a definitive “thumbs up” for the overall user experience. A user might say that they’d recommend your product to a friend, but this doesn’t automatically mean that they found the product easy to use or navigate.
To gather data for your net promoter score, you’ll ask a sample of users one simple question: How likely are you to recommend this product to a friend? The user can then answer on a scale of 0 (not at all likely) to 10 (extremely likely).
Let’s say you collect answers to this question from 100 users. Here’s how to calculate your overall net promoter score:Group your participants into one of three categories:
Promoters (those who give a score of 9 or 10),
Passives (those who give a score of 7 or 8),
Detractors (those who give a score between 0 and 6).
Use the following formula to calculate your NPS: (Number of promoters – number of detractors) ÷ the total number of participants. You can then multiply this value by 100. For comparison, an average NPS score across 150,000 organisations is 32
Define questions and then ask users.
NPS Benefits
Tends to get a higher response rate
The NPS question is larger in scope
Is a long-term customer satisfaction metric
Reflects the big picture of customer loyalty and may prompt word-of-mouth promotion
Focuses on long-term growth, being a good indicator of repeat purchase
Offers proper customer segmentation
Can be easily benchmarked
Provides accurate and realistic data
Generates more honest feedback since it is not tied to a specific interaction
NPS Limitations
Requires follow-ups for even more actionable data
Good NPS ratings can create a "tunnel vision" effect
Tendency to recommend, does not necessarily translate into it actually happening
Example NPS questions
How likely are you to recommend (brand, product, or service) to a friend (or colleague)?
What is the primary reason for your score?
How can we improve your experience?
Which product/ service features do you value and use the most?
What was missing or disappointing in your experience with us?
What can we do to make you a happier customer?