NPS: The What, The Why, The How
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NPS: The What, The Why, The How

on / by Zac O'Neill

What is NPS?

Net Promoter Score (NPS) was invented by Fred Reichheld, Brain & Company, and Satmetrix Systems in 2003 to determine the engagement and loyalty of customers. The score is determined by simply asking users “How likely are you to share {x} with your friends and family?”, presenting them with a 0-10 scale to answer.

NPS is based on the principle that every company’s customers can be divided into three categories: those who score 0-6 are Detractors, 7-8 scores are Passives, and 9-10 scores are Promoters. Since 2003, NPS has grown to be widely measured across all industries and now, two-thirds of Fortune 1000 companies are using this metric.

Why Should I Use NPS?

Try to envision what goes on in a single customer’s head. Think about their opinions, thoughts, and feelings towards your brand. Now take into account how they feel about your advertising, their shopping experience, communication, etc? Lastly, try to combine all those thoughts together into one emotion. It’s impossible. NPS, on the other hand, puts a quantifiable number on the very qualitative feelings of your customers. By calculating NPS you have access to emotionally driven consumer data that is easier understand, compare, and analyze.

How do I get started?

Having a user feedback solution, such as Usabilla, installed on your online channels allows you to determine the NPS for your brand or business by asking your users directly.

1. Write

i) The question is always “How likely are you to share {X} with your friends and family?” All you have to do is substitute your business name for X. (I promise this isn’t geometry)

ii) The response is a scale is from 0-10

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2. Ask

i) Determine a couple of places where you want to ask your question.

ii) Be wary of the location. For example, an NPS question at the end of the checkout experience will probably receive higher scores. (The customers just made the commitment to purchase and have the “post checkout glow.”) The responses to an NPS question on a contact us page will most likely be lower. (The customers usually aren’t searching for your phone number to call and say how happy they are.)

iii) Asking your customers this question at different touch points helps you collect a variety.

3. Score

i ) Collect all data and categorize the responses into the three categories

    • Detractors (0-6)
    • Passives (7-8)
    • Promoters (9-10)

 

ii) Now apply this equation:

“(Number of Promoters — Number of Detractors) / (Number of Respondents) x 100”

This determines your Net Promoter Score. For example, if you have 10 responses: 3 are detractors, 1 is a passive, and 6 are promoters; the NPS score would be 30 = (6-3)/(10 X100)

4. Analyze

The true value of NPS comes from the analysis.

i) Compare the results for the NPS question from the same location to get a specific view. This is a good best practice for benchmarking. Especially if you want to find out how users are feeling during a certain stage of the customer lifecycle.

ii) Compare the results from all over to get an overall NPS. This is best done through asking NPS thoroughly across multiple platforms.

iii) With Usabilla’s benchmarking functionality you can then compare your overall NPS to data collected within your sector – or a different industry altogether – to see how you measure up.

Inspiration

Many of our clients utilize, collect, and measure NPS as an important part of their overall strategy for success. To inspire you, below are 3 great examples of how our customers ask NPS to their online users.

Skyscanner

Skyscanner 2If you have been on our website, you may have run into one of our exit surveys. These surveys are triggered by trying to leave the current window you are in. Skyscanner targets their website viewers with an exit survey solely for the purpose of getting their NPS as they leave. This is a great option for targeting because it has no bias. Everyone has to leave the site, so everyone is targeted.

Skyscanner 1

With Usabilla you can also show different “Thank you” pages depending on the response to previous questions. If a user answered 9 or 10 (Promoter), Skyscanner would send them to a custom “Thank You” page that had a Facebook widget embedded. Since their user had said they were extremely likely to recommend Skyscanner to their friends and colleagues, why not give them the opportunity to do this via social media. This a fantastic way to connect different aspects of your digital presence.

De Bijenkorf

This Dutch luxury department store asks the NPS question to only a certain percentage of visitors on their website. This is also one of the better targeting options for NPS because there is no bias. It is shown to customers only based on probability.

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Usabilla

We like to ask the NPS question in our feedback form, it’s something we actually recommend to all of our clients. This is especially a good place to start if you are collecting NPS for the first time. With Usabilla, you can show different versions of the feedback form depending on the drop down option you choose. We ask NPS on all options except for if a user selects “bug.” (See screenshots below, or click the feedback button on our website.)

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We know that the user is probably not the happiest if they have found a bug, meaning it isn’t an appropriate time to ask for NPS. Instead, the number one priority should be collecting that information and quickly fixing the bug.

Hopefully this introduction is enough to get you on your way to determining your NPS – you can always check our Support page for more technical instructions from the Customer Success Team.

Finally, if you are looking to turbocharge your NPS collecting, schedule a demo with us today to see if Usabilla is the right fit for your business.



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Article by

Zac O'Neill

Zac is a Customer Success Manager in the NYC office. He is a Pittsburgh native with a passion for music and "dad jokes"/puns. The favorite part of his role is brainstorming with clients to create unique surveys.

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