Anyone who works in marketing and sales knows the importance of monitoring the performance of the strategies. After all, figuring out what works best for your business means increasing conversions and profit margin. The NPS, or Net Promoter Score, is one of the main indicators of customer satisfaction.
In this article we will explain what NPS is, talk about the advantages of tracking this metric, and offer some tips for you to implement it in your company right away. Find out how a simple question can help you better understand your customer’s profile and optimize your sales funnel. Happy reading!
Understand what Net Promoter Score is
The Net Promoter Score, or NPS, is an indicator focused on measuring the level of customer satisfaction. This indicator consists of a simple question that you have probably already answered after a purchase: on a scale of 0 to 10, how much would you recommend brand Y to a friend? Justify your answer (optional).
According to how engaged the consumer is with the company, the NPS will separate the consumer into 3 different levels.
- Detractors: the dissatisfied customer profile, gives the lowest scores to the company (between 0 and 6). They are an excellent source for understanding where the brand is going wrong in the sales process.
- Neutrals: this audience is on the fence, assigning a score of 7 or 8. These are customers who may even make a new purchase or refer your company, but they are not loyal.
- Promoters: the ideal client, the one who gives a score of 9 or 10. This is gold for your company, as these are people who have had an excellent customer experience and are more likely to refer your business or make new purchases.
See the importance of NPS to monitor sales
Because it is a seemingly simple question, it is common for companies to underestimate the power of NPS. However, this indicator is very important to understand if your sales strategies are really efficient and you are providing a positive experience for your customers.
In addition, with Net Promoter Score it is possible to get more accessible and honest feedback from your audience. Since this survey is quantitative (the scale from 0 to 10) and also qualitative (the justification for the grade, which is usually optional), you can get very specific information, contributing to a better performance.
Apply the NPS and check customer satisfaction
To apply the Net Promoter Score, simply ask the question after the purchase. In the case of e-commerces, it is possible to schedule a popup every time the customer finishes the purchase, another strategy is to create an automated email that is fired to the customer who finishes the purchase with that issue.
To evaluate NPS results and increase your sales, simply perform the following calculation.
- Separate your customers into the 3 bands: detractors, neutrals, and promoters. Example: out of 200 respondents, you have 150 promoters, 30 neutrals and 20 detractors.
- Find out what percentage (%) you have of promoters and detractors. In our example, it would be 75% promoters and 10% detractors.
- Apply the formula NPS = % promoters – % detractors. Applying it to the example, NPS = 75 – 10, i.e., the Net Promoter Score would be 65, classified as a very good result.
Because it is a percentage subtraction, the NPS can vary from -100 to 100. From -100 to -1 is considered very bad, from 0 to 49 reasonable, from 50 to 74 very good, and from 75 to 100 excellent.
Did you like to know more about Net Promoter Score? As you may have noticed, the NPS is an indicator that, besides presenting the level of customer satisfaction, can also bring justifications that contribute positively to the marketing and sales sectors. To optimize monitoring, it is important to have a platform like a CRM to centralize the information.
If you enjoyed this article, then we invite you to check out our material on Customer Relationship Management – CRM and find out how this tool can transform your business!