How well do you understand your customers? Over 70% of consumers agree the customer experience helps drive their buying decisions. In fact, 86% will pay more for a better customer experience.
Businesses that focus on improving the customer experience can expect an 80% increase in revenue, too.
It’s difficult to improve the customer experience without data and information, though. Understanding your net promoter score (NPS) could help. Once you have your NPS score, you can make informed changes to your operations.
What is a net promoter score, exactly, and how do you calculate NPS? Keep reading to find out!
After reading this guide, you’ll have the data you need to make smarter changes to your business. Read on to learn everything you need to know about the NPS today!
What Is A Net Promoter?
Before learning how to calculate your net promoter score, let’s answer the question that likely brought you here.
What is a net promoter score, exactly?
Your NPS score can help you determine if consumers are satisfied with their customer experience. You can determine if customers are at risk of churning as well.
Around 95% of buyers will tell friends and family members about a negative customer experience.
In fact, over 30% of consumers will end a relationship with a brand after a single poor customer experience. Improving the customer experience can help you retain loyal customers. Improving your customer retention rate could save you valuable time and money. In fact, great customer service wins over 73% of customers. One loyal customer is worth about 10 single purchases. Meanwhile, a 2% bump in customer retention rates can reduce costs by 10%.
If you want to improve the customer experience to retain customers, you need to understand their experience. You can gather feedback from your customers to understand the pain points they’re experiencing. Then, you can understand their habits, behaviors, and challenges.
You won’t have to wait until customers lodge a complaint. Instead, you can make changes to your operations before they complain. You’ll reduce the risk of losing customers as a result.
A higher NPS indicates you have a higher number of satisfied customers.
You can understand why customers are happy to continue making similar improvements.
If your NPS is low, you’ll know you need to make changes right away.
Using The NPS
Now that we’ve answered the question “what is an NPS,” let’s discuss using it. It’s not enough to calculate the net promoter score once. You can use your NPS to measure how the consumer’s point of view changes over time. For example, you might recognize a positive or negative trend.
If the trend continues to increase, your business know that the consumers are happy. The changes you’re making are working to improve the customer experience.
But if the trend declines, you’ll know you need to reevaluate your current strategy. You might need to consider making bigger changes to your operations. Otherwise, the customer experience won’t improve.
When calculating your net promoter score, you’ll send consumers a survey to learn about their experience. The survey gives consumers a chance to specify their complaints, too. You can determine where they’re encountering problems.
You won’t have to make assumptions about which changes to make. Instead, you’ll have real information you can use.
For example, some consumers get frustrated when they’re put on hold too long. You might consider adding a chatbot to your website. An answering service could reduce wait times and improve the customer experience as well.
How To Calculate NPS Scores
How exactly do you calculate a net promoter score?
Following this three-step process can help you gather the customer data you need. You can also use an online tool like to get started on NPS score calculations.
1. Send Customer Surveys
In order to gather the data for determining the NPS score, you’ll need to send out a survey.
You can send a survey that includes the question “How likely are you to recommend our business on a scale of 0 to 10?” Once consumers choose a number, they can indicate why they made that choice.
There are a few different ways you can gather the data you need to determine your NPS score. For example, you might try:
• Adding a survey to the end of customer service calls
• Using a pop-up notification on your website
• Using an online survey
• Sharing polls on social media
• Sending customers an automated email
It is critical that consumers rank their experience on a scale of 0 to 10 for an objective and quantitative measurement. You’ll need to give consumers the chance to elaborate, too. Remember, the information they provide for NPS scores can help you make the necessary changes to your business.
Otherwise, you might make assumptions about how to improve your NPS score.
2. Organize The Responses
After a period, gather the data from your NPS surveys. Arrange your responses based on:
• Promoters (anyone who responded with a 9 or 10)
• Passives (anyone who responded with a 7 or 8)
• Detractors (anyone who responded between 0 and 6)
If you have a high number of promoters, the majority of customers are happy. These customers would recommend your business to a friend.
Detractors, on the other hand, are likely to churn and burn. You could lose these customers quickly.
Passive customers aren’t highly satisfied and are at risk of churning, too.
3. Compare And Calculate
To calculate your NPS score, start by dividing the number of promoters by the number of respondents. Follow the same step using the number of detractors.
Then, convert each number into percentages.
Next, subtract the detractor percentage from the promoter percentage. Your final total is the net promoter score.
If you have 70% promoters and 30% detractors, you have an NPS of 40%.
A lower NPS means you need to improve your customer experience. A higher NPS indicates consumers are satisfied with your product or service.
You can start making changes to your business based on the responses you receive. After a while, send out another survey. Determine if your NPS has changed.
If the NPS has improved, you’ll know the changes you’re making are improving the customer experience.
What Is A Net Promoter Score: Your Guide To Understanding Customers
To recap, what is an NPS? Your net promoter score can help you learn more about the customer experience. You can make sure consumers are happy or make changes to your business.
You will have an easier time retaining long-term, happy customers as a result and avoid consumer rage when you use NPS scoring.
Searching for more tips on improving customer experience? You’ve come to the right place for CX insights and strategies. Explore our latest customer service guides today for more business building basics.
