NPS

Widely used in customer satisfaction research, NPS (Net Promoter Score) is an important metric that's used to assess the customer's overall satisfaction with a company's product or service.

What is NPS

NPS stands for Net Promoter Score. A Net Promoter Score is a metric businesses use to understand the likelihood a customer is to promote their service or product to a friend or colleague. The index ranges from -100 to 100, depending on the customers' response on the NPS survey. When customers indicate on the NPS survey that they are not likely to recommend that product, the NPS for that company goes down. Conversely, if a customer indicates they are likely to recommend a product, that company’s NPS increases.

How Does NPS Work

NPS surveys are very simple. In fact, they only ask the customer one question: how likely are you to recommend this product or service to a friend or colleague? The customer selects whatever is appropriate on a 0-10 scale, 0 meaning not likely at all and 10 indicating that the customer highly recommends. Based on this feedback, customers are grouped into categories called promoters, passives, and detractors.

Promoters are customers who selected 9 or 10 on their NPS survey. This means these customers highly recommend that product or service. These customers are usually very satisfied with said products, and often renew contracts to continue to use the product or service time and time again.

Passives are customers who selected 7 or 8 on their NPS surveys. These customers tend to be satisfied with the product or service in question. However, they aren’t satisfied enough to promote it to others. These customers are likely to be drawn to other competitors more easily than Promoters since they aren’t completely happy with the product or service.

Detractors are customers who selected anything under 6 on their NPS survey. These customers are not satisfied with the product or service. They are not likely to recommend the product or service to others. These customers tend to be very susceptible to churn as they are not happy with the product or service in question.

A company’s overall NPS is calculated by aggregating the total number of Detractors with the total number of Promoters. This gives a company their NPS between -100 and 100. In other words, if all customers selected less than 6 on their NPS survey, that product or service in question would have a -100 NPS. This is the same if all customers voted 8, 9 , or 10 on their NPS survey, the product or service would have an NPS of 100.

Why is NPS Useful

NPS provides businesses with a barometer on customer satisfaction. Oftentimes, it’s difficult to understand if customers are happy with a particular product or service. An NPS survey to customers is easy for customers to fill out since it’s only one question. In addition, because it’s so quick for customers to complete, companies can gather a large data set of responses. From their NPS, a company can take steps to improve their customer experience and make product updates, which in turn, leads to lifetime customers and less churn.

How to Choose a Software that Helps Drive a High NPS

NPS is a standard for many businesses to understand their customer satisfaction. Because of this, driving a high NPS isn’t a nice to have, but essential. Some software is better than others for helping companies to reach a high NPS. Here are a few things to consider when selecting a call center software that’ll help drive high NPS:

  1. Reduce agent churn - Unfortunately call center agent churn is still the number one problem for call center managers. One thing companies can do to prevent churn and build up master agents quickly is invest in a call center software that provides agent coaching. Whether agents are seasoned or brand new, sometimes they need support. A call center software that helps agents find the answers they need fast, will improve the overall customer experience. An excellent customer experience will likely yield to a high NPS.
  2. Intuitive & high quality product - A great way to drive a higher NPS is by providing your customers with an intuitive, high quality product. By investing in technology updates that customers will value and enjoy, companies can increase their customer satisfaction rates. For example, in telephony, having a high quality voice connection is important both with calls between colleagues and calls in the customer support center. Therefore, investing in a call center software that provides high quality voice helps colleagues get work done faster and helps call centers connect with their customers, creating a positive customer experience.
  3. Analyze the analytics - Customers will often tell companies what they’re happy about but also what they’re dissatisfied with. This is why investing in a call center product that provides detailed call analytics can help companies identify areas of improvement for their product. When companies look into what customers are saying about their products, they can make adjustments. These adjustments can lead to higher customer satisfaction, and ultimately, a higher NPS.