NPS is an indicator of the customer experience, providing an overall metric organizations can track over time. It allows you to monitor improvements in a product, service or organization.
NPS starts by asking a single question: “How likely is it that you would recommend [Organization X/Product Y/Service Z] to a friend or colleague?”
NPS is then calculated by first splitting respondents into three distinct groups of customers:
- Promoters - those customers who respond with a score of 9 or 10 and are considered loyal and enthusiastic customers.
- Passives - customers who respond with a score of 7 or 8. They are satisfied with your service but not happy enough to be considered promoters and could still be vulnerable to competitor offerings.
- Detractors - customers who respond with a score of 0 to 6. These are unhappy customers who are unlikely to buy from you again, and may even discourage others from buying from you.
The metric is then established by ignoring the passive customers and subtracting the number of detractors from the number of promoters.
The NPS score helps you dig further with follow-up questions to discern why the customer rated you the way they did. For example, if they rate your product or service 0-6, you can follow up with ‘We’re sorry to hear you were disappointed with our service. What could we do to improve in the future?
With your NPS score, you can also segment customers by loyalty, identify unsatisfied and at-risk customers and follow up with them and close the loop to resolve their issue, benchmark your product, service or company against industry and competitor scores, and uncover customer loyalty drivers. Additionally, you can make powerful predictions about customer behavior, such as whether they’re at risk of churn.
Qualtrics NPS Software allows you to measure, analyze, and improve NPS across your organization. You can collect feedback through multiple platforms, including email, messaging apps, mobile, and offline surveys. With flexible dashboards and pre-configured reports, you can get the right information, to the right people in real time so they can act quickly to improve the customer experience.
Download our NPS survey template and use it with your Qualtrics Research Core™ account. Don't have an account? Create one for FREE today!