Proven steps to implement Net Promoter process and utilize NPS tools - by Quality Solutions Inc
NPS Methodology
Measuring your Net Promoter ScoreTM
Promoters are your customers who are so enthusiastic about your company or brand that they buy more than the average customer and delight in referring your business to their friends, peers, and colleagues. These customers give you a rating of 9 or 10.
Customers who give you a rating of 7 or 8 are Passive customers. They may become Promoters if you improve your product, service or overall customer experience, but for now they do not factor into the Net Promoter Score.
Detractors feel mistreated, abused, and hurt. Their experience is going to drive them to cut back what they purchase from you and switch to your competition. They are also not shy about sharing with others their plight and warning current and potential customers to stay away from your company. Detractors are customers who give ratings of 6 or lower.
Your Net Promoter Score is calculated by subtracting the percentage of Detractors from Promoters to get an overall NPS number as shown below:
% of Promoters - % of Detractors = Net Promoter Score (NPS)
| Example: Promoters = 56% Passives = 36% Detractors = 8% Net Promoter Score: 56% - 8% = 48% |
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NPS Methodology
We begin with the ultimate question. “How likely would you be to recommend this company to a friend or colleague?” Respondents are asked to respond using a 0 to 10 scale where 5 is neutral. An effective Net Promoter process is not simply based on asking customers a single question and ending the survey. It is important to understand why each respondent gave you the score they did. Understanding what needs to be improved (or specific actions taken) to raise your score to a 9 or 10 gives you actionable information which can be targeted for corrective action or process improvement. Understanding why a customer gave you a 9 or 10 helps you to better understand your core competencies. Our qualitative analysis of follow-up comments from Promoter, Passives, and Detractors is the key to increasing customer loyalty and profitable growth.
The NPS methodology is more than a score. Each score represents an opportunity. Each response is tied back to a specific individual. Examining the underlying reason behind the score and developing effective customer-centric solutions can convert the Passive customer into a Promoter and minimize the number Detractors.
The Net Promoter process involves four stages of implementation:
- Stage 1: Identification of touch points
Regardless of whether the surveys are to be transactional or relationship based, understanding the touch points and their impact on the “customer’s experience” is the jumping off point for your NPS journey. - Stage 2: Developing your NPS infrastructure
There are several key actions required. Determine the type of survey you will deploy, Transactional vs. Relationship; sampling methods; and naturally the data collection method- Telephone or Online. Lastly it is important to identify the linkages between the survey questions, and your company’s Key Performance Indicators. - Stage 3: Determining the Drivers of Customer Loyalty
The results of each study are evaluated and presented using a scorecard. Your scorecard quickly points you in the direction to take action. Each report includes a Net Promoter drive analysis. This analysis provides you with a clear understanding of what is influencing the behaviors and feelings of Detractors, Passives, and Promoters based on their individual customer experience. Post survey actions may include customer follow-up to clarify the feedback. Your customer care personnel will receive training on how to effectively engage customers after a survey to gain greater insight and strengthen the relationship with your customers. - Stage 4: Closing the Loop
Front Line, Middle Management, and Executive involvement is necessary to have a fully effective closed loop system. Front line personnel such as sales, customer service, and technical support personnel are trained in techniques on how to follow-up with respondents in order to improve the customer relationship. Frontline personnel play a key role in developing Promoters and neutralizing Detractors. Middle Managers receive training on internal and external benchmarking, performance coaching, and how to manage excellent customer experiences across all customer touch points. Managers are also given tools to help improve process level performance. Executive coaching is provided to help executives develop appropriate forms of recognition, communication, and strategy deployment.
Quality Solutions is uniquely capable of supporting you through your Net Promoter journey. Your company will be supported by a team of expert consultants lead by a Certified Net Promoter Consultant. We understand the transition to a “customer-centric” business is not as simple as it may sometimes sound. Implementing a Net Promoter process is frequently described as a culture change for an organization since the processes requires involvement from all levels of the company. As part of our readiness assessment of your organization we will examine your existing market research and customer feedback mechanisms. We will review you corporate and process level metrics or KPS, as well as your policies and procedures regarding customer complaints, warranties and claims management. An assessment is made of your customer touchpoint to better understand how they might impact the “customer’s experience”.
As we have said we utilize Net Promoter in conjunction with other equally proven techniques which give our clients a thorough understanding of their position in the market. Companies don’t operate in a vacuum void of competitors. Quality Solutions’ clients always know how their NPS score stacks up with their competitors. Our Price/Value analysis includes correlation analysis with your NPS and that of your competition.
Our reporting methodology includes use of Net Promoter Score competitive comparisons as well as identification of appropriate Net Promoter Score benchmark metrics.
Learn More About:
- Net Promoter Score
- NPS Performance Reporting
- Online Survey Solutions
- NPS Cultural Index (Employee Surveys)
Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.