KPIs & Metrics

Could NPS Methodology Help Improve Your Customer Service Performance?

Net Promoter Score (NPS) is a strategy you can use to better understand how you’re performing with customers. Here’s how to use it to improve your customer service.

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NPS is a methodology companies use to determine how they’re performing vis-à-vis their customers. Organizations use it to guide their customer service, sales, and marketing and account management activities. If you’re looking for a framework that can help you put the work your customer service team is doing into the broader context of customer satisfaction, NPS can help. Here’s what you need to know:

Understanding the basics: NPS is measured by using a simple question. That question is as follows: “Calculate your NPS using the answer to a key question, using a 0–10 scale: How likely is it that you would recommend [brand] to a friend or colleague?” You can create versions of the survey that will drill down into deeper areas to understand what’s working and what’s not—but fundamentally, this is how you determine your score.

Ranking the customers: Once you’ve conducted the survey, you’ll be able to categorize users into individual segments based on their level of satisfaction. Depending on where your customers fall, you can then define an action plan to better serve them. As one source describes, customers are ranked in the following way: “Respondents are grouped as follows:

  • Promoters (score 9–10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
  • Passives (score 7–8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
  • Detractors (score 0–6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.”

 

Evaluating your overall performance: Once you’ve completed the analysis, it’s important to take a step back and look closely at how you’re doing. What percentage of your customers are promoters? Determine what you can do to keep them happy and get them working to refer other customers to you. Pay attention to your passive customers. Are there simple things you can do to increase their satisfaction and keep them on board? Finally, focus on your detractors and develop a plan to rehabilitate at-risk customers.

Ongoing measurement: NPS provides a baseline to see how you’re performing in terms of customer satisfaction. As you get a handle on your overall current level of performance, it’s also important to evaluate how you’re doing over time. Put a plan in place to measure the impact of your actions over time and explore what kind of an impact your efforts are having. By measuring improvement, you’ll know what’s working and where to invest maximum energy.

It’s important to find ways to measure the customer experience, and NPS can be one tool that makes sense of that process. Explore whether it’s a good fit for your needs and what steps you can take to improve your overall performance.