With Medallia, you can improve experiences that increase NPS and deliver meaningful business results.
Net Promoter Score Definition
The Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others. It is used as a proxy for gauging the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the brand.
Net Promoter Score Calculation
顾客are surveyed on one single question. They are asked to rate on an 11-point scale the likelihood of recommending the company or brand to a friend or colleague. “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?” Based on their rating, customers are then classified in 3 categories: detractors, passives and promoters.
‘Detractors’ gave a score lower or equal to 6. They are not particularly thrilled by the product or the service. They, with all likelihood, won’t purchase again from the company, could potentially damage the company’s reputation through negative word of mouth.
‘Promoters’ answered 9 or 10. They love the company’s products and services. They are the repeat buyers, are the enthusiastic evangelist who recommends the company products and services to other potential buyers.
The Net Promoter Score (NPS) is determined by subtracting the percentage of customers who are detractors from the percentage who are promoters. What is generated is a score between -100 and 100 called the Net Promoter Score. At one end of the spectrum, if when surveyed, all of the customers gave a score lower or equal to 6, this would lead to an NPS of -100. On the other end of the spectrum, if all of the customers were answering the question with a 9 or 10, then the total Net Promoter Score would be 100.
Build experiences that create promoters
通过梅利亚yobet体育官网，您可以了解创建推动者，被动和批评者的经验 - 并驱动您的公司采取行动。您可以挖掘NPS评分后面的“为什么”，优先考虑投资，并在组织中分发可操作的数据以推动参与和改进。了解NPS是学习更多关于您业务健康的重要起点;您可以启动计划和拉杠杆，为您的企业和服务创造更多倡导者，最终提供您可以依赖的收入。
See how Medallia has helped companies improve their NPS by building foundational systems and practices that focus on the customer experience.
The “Why” Behind the NPS® Score
Net Promoter Score (NPS)® is a powerful tool in gauging customer loyalty and, by extension, company health. Learn how you can use it in your own CEM program.
How to read a Net Promoter Score?
的基本构造Promoter Score is easy to understand, hence its popularity and widespread usage. If a company has more detractors than promoters the score will be negative and vice versa. A Net Promoter Score provides companies with a simple and straightforward metric that can be shared with their front line employees. The Net Promoter Score is helpful in that it can be used as motivation for employees to improve and to provide the best customer experience possible. The ultimate objective here is to convert customers who were less than happy or unimpressed into promoters who will put the word out and allow for increased revenues and profits.
Higher Net Promoter Scores tend to indicate a healthier business, while lower Net Promoter Scores can be an early warning to dig deeper into potential customer satisfaction and loyalty issues. Net Promoter scores are often averaging quite low. Fred Reichheld, in his calculation of 400 companies across 28 industries back in 2003 (HBR article “The One Number You Need to Grow”), found that the median Net Promoter score was just 16.
It’s clear to see how the balance of detractors or and promoters would indicate a company’s potential for success. Starting from behind, it would cost a company much more money to win back a detractor as opposed to simply keeping promoters on board. A detractor can file complaints, bog down customer service lines and will need more time and resources from the company to be served. They won’t buy more products and services from the company given their negative experience and they might very well bad mouth your brand to their peers.
The reverse is true with a customer enthusiast and promoter. They’ll buy more from the company they love, they’ll need less customer service and will refer friends and relatives. Free publicity from a promoter means the company need not spend as much on marketing and advertising! As Fred Reichheld said, “essentially promoters become the company’s marketing department.”
Bain and Co, who originally introduced this metric, have researched the correlation between a company’s growth and its Net Promoter Score. They found that for most industries, the Net Promoter Score accounts for 20% to 60% of a company’s organic growth rate. On average, the leader in an industry has a Net Promoter Score more than double of its competitors. (You can find more on the Bain’s website:“NPS and growth”.)
Bain & Co shows on its website a partial list of companies using the Net Promoter Score system. The list is far from comprehensive but gives an idea of the Net Promoter Score popularity and widespread use. The list can be found here:Companies using NPS
First off, without senior leadership sponsorship and a strong commitment to improving the customer experience, it will be difficult for any one part of the company, be it marketing, sales, operations, customer service or a customer experience team to get the necessary cross-functional adoption and accountability for the program. It needs to be a company-wide effort.
其次,NPS生态系统需要有一个关闭d loop. Front employees need to be able to act upon real-time feedback and from insights from customers and the rest of the organization. Whether it is operations, sales, or marketing, all should be able to learn and improve from the utilization of the information obtained.
Third, the data needs to be properly analyzed. The power of the Net Promoter Score lies in its simplicity but unless a business dissects the data and figures out the root causes of its detractors’ experiences or the factors of the success that turned simple customers into promoters, it will miss out on a recipe for future growth, profitability and sustainability. For example, one is well served by reading all the comments, tagging them, classifying them and then looking for patterns. It is paramount for a company’s leadership to seek out the “whys” behind the data and to adapt and evolve accordingly.
Improve the experiences that impact NPS, with Medallia
With Medallia as your CX partner, you can identify, measure, and improve the experiences that have an impact on your company’s NPS score. The Medallia Experience Cloud can easily compute a score and, more importantly, give you insights into the “why” behind the score. As customers broadcast valuable feedback about your business through surveys, social media, review sites, and countless other channels, there’s a bounty of unstructured and disorganized data that many companies find challenging to analyze.
Connect with a Medallia NPS Expert
与我们的CX专家之一安排时间，让我们帮助您为您的业务构建更多的倡导者和推动者。从关系和交易NPS到完整的客户旅程计划 - 我们的团队可以提供最佳实践和见解，以帮助您开始。