The customer experience and loyalty can be taken as the direct measurement of the overall progress and efficiency of the entire operations of any business, if your customers are happy and satisfied that means everything is working properly, if your customers are not happy then there would be definitely some problem which can be identified by asking more questions or evaluating various touch points of the customer journey and the quality of the products/services. The NPS Score measurement is the very first step that any business should take and it is also considered to be the gold standard for the customer experience. NPS Score or Net Promoter Score is considered to be a universal standard for measuring the health of the customer relation with their brand in Dubai and all across the UAE. All other feedbacks and evaluation methods comes after the NPS Score or Net Promoter Score.
What is NPS Score?
The NPS Score is a very simple customer happiness/satisfactionmetrics and its value spans from -100 to +100, where negative value represents ‘detractor’ and positive value represents ‘promoters’. The calculation is very simple, all you need is to set up a question using customer feedback system and then take percentage values of both detractors and promoters then minus/subtract the detractor from the promoters and you will get the NPS Score. Usually the NPS Score feedback is measured as a rating scale from 0 to 10. All the customer feedbacks from 0 to 6 are considered as detractor, the ratings from and including 7 to 8 are considered to be the ‘passive’ and 9 to 10 are the actual promoters. Only the actual promoters will promote your products and services, in some cases maybe up to half of the passive customers will also promote your products and services, but that phenomenon is very rare and is specific to certain industries only.All the customers who rates up to 6 are most likely not to promote your products and services at all.
The NPS Score question are mostly like:
- How likely will you recommend our [product or service] to your family and friends?
Basically you have to ask to your customer how likely will they recommend or share your products or services with their family, friends and colleagues.
What are the Types of NPS Score (Net Promoter Score) Surveys?
Here in Dubai and in other emirates of UAE business and organizations only use one type of NPS which is mostly after a customer get served or made a transaction. However there are other types of NPS Score too which are frequently used to collect valuable business intelligence data:
1. Transactional NPS Score
The transactional NPS Score is the most popular NPS Score or customer feedback type. As per this method the NPS question is asked after each transaction. For example,immediately after a customer get served at a customer service center or made a purchase.
2. Relational NPS Score
The relational NPS Score is taken on regular intervals, for example after each quarter or after each six months. It is a periodic health-check of business and customer relationship. The relational NPS score is taken to understand how the customers think and feel about the brand.
3. eNPS Score
The eNPS Score or Employee-NPS Score is the net promoter score to measure employee satisfaction and employee happiness. The employee satisfaction is also very important. Happy and satisfied employees are tend to be more efficient and produce quality work.
Businesses can use all these NPS Score Types to improve their business intelligence. Such data is very helpful in taking decisions to make improvements and making future strategies.
What can be Measured by NPS Score Surveys?
Businesses can measure almost any metrics they want. As the NPS Score survey is a simple question or a set of only a few questions, the questions could be asked about anything such as individual services/products, branches, stores, employees/agents, website, etc. Basically the goal of any NPS Score customer feedback survey is to measure the strength of the relationship of the business with its customers. Business can ask customers to opine on different reasons of promoting their brand and products or services. Businesses can easily identify the most popular products/services among their customers and vice versa. Remember only the sales number is not enough, you can get higher sales of any product or service for a variety of reasons. However, the popular products/services will be the only one which customers show interest in promoting to others. Business can also identify the most popular features of a particular product and vice versa. This is how a business can form strategies to earn more loyal customers.
How to Create NPS Score Surveys?
The NPS Score Survey is designed to measure the customer loyalty but along with that the businesses can also understand what is effecting it the most. There is a common belief among the marketers in Dubai and all around the UAE that the NPS Score customer feedback survey should have only one question, however that is not true, it can have more than one questions and it should have more than one questions. But it shouldn’t have more than four or five questions. It is important to keep the NPS Score Survey short, precise and to-the-point. Rather asking general questions which doesn’t provide accurate data business should ask direct and very specific questions. For that the first thing is to set up an objective then prepare the questions. The NPS Score Surveys with three questions have the highest attempt score and such customer feedbacks also provide accurate and precise data. Here are some important things to consider while creating a NPS Score Customer Feedback Survey:
- Ask at least three questions
- All questions should be related to a single subject
- Make identity fields optional
- Ask for demographics (only if needed)
- Keep questions short and precise
- Provide adequate answers along with option to add comments
- The final questions must have a scale with the value from 0 to 10
- Add a comment or suggestion box at the end with the capacity of at least 500 words
- The final slide after the submission should have a positive message and contact details
- Consider the platforms/mediums while preparing the questions
It is important that you ask for only a few most important information which are absolutely necessary to process the data. People don’t like to fill-in long forms to attempt a customer feedback survey. Short customer feedback surveys have the better attempt rate than long surveys. Customer Feedback Surveys related to a single subject also yield accurate data and have higher attempt rate. Consider the medium or platform of the interaction while preparing the survey questions.
For example if the survey is being conducted through the touch screens or tablets or kiosks placed next to the customer service counters then the questions should be of appropriate length, if you are conducting NPS Score survey through customer feedback mobile app then the questions should be shorter than usual to fit in everything in a single screen. If you are conducting customer feedback surveys through the emails then consider making an attractive background, make sure the page is responsive and keep the fonts and style appropriate. Such things will improve the response rate.
What type of Customer Feedback System is suitable for NPS Score Surveys?
When it comes to the customer feedback systems there are too many options available for businesses in Dubai and all around the UAE. Almost all popular customer feedback survey systems offer facility to create NPS Score surveys. For example RSI Customer Feedback System is one of the leading tool for measuring the NPS Score and it supports all types of NPS Score surveys too with additional capabilities and compatibilities for various platforms and mediums. There are certain features that makes a customer feedback system suitable for measuring the NPS Score. If all those features are available in a customer feedback system it would be suitable for the NPS Score surveys:
- Ability to Add Multiple Surveys
- Survey Customization Control Panel
- Campaign Setup and Management
- Compatibility for Multiple Mediums and Platforms
- Survey Designing or Pre-loaded Theme (customization panel is also good)
- Cloud, Online Hosting, Local Deployment Compatibility
- Automatic Notifications and Alerts for the Admins and Management
- Smart In-built Stats and Data Analytical Engine
- Comprehensive Reporting Module
- Customized Reports
- Graphical Reports
- Summary/Corporate Reports
- Trend Reports
- API Integration with Third-party Tools and Software
- In-built Email and SMS Campaign Gateways
- Remote Management
If a customer feedback system has all these features and functionalities it will be very suitable for NPS Score surveys. Obviously it depends upon the survey itself and the platform or medium you are using, but mostly all of the above mentioned features will help you in obtaining better results.
How to Calculate the NPS Score?
The NPS Score is always calculated in the percentage but its value is taken in integer only. Once the survey campaign is finished or the reports are prepared from a customer feedback system, the next step is to calculate the NPS Score. For that only the total number of responses for each value is required. Take notes of the total number of customers and segregate them in the categories of detractors, passive and promoters. Then calculate the percentages. Here is a formula to calculate the percentage:
NPS Score = (No. of Promoters – No. of Detractor) / (No. of Total Feedbacks) X 100
Note: The total feedbacks are the cumulative sum of all the feedbacks including promoters, detractors and passive feedbacks.
For example let say you have received 1000 responses in total and the breakdown is as follow:
- Detractors (0 – 6 Range) = 100
- Passive (7 – 8 Range) = 200
- Promoters (9 – 10 Range) = 700
If you calculate the percentage for each, you will get:
- 10% Detractors
- 20% Passive
- 70% Promoters
In order to calculate the NPS Score. Take the value of the Detractors which is 10% and Subtract if from the value of Promoters which is 70% and you will get:
NPS Score = 60
As the NPS Score is taken just as an integer so rather than 60% it will be 60 only.That is how the NPS Score (Net Promoter Score) is calculated.
What is NPS Driver Analysis?
The NPS Driver Analysis or NPS Key Driver Analysis is used to detect and determine the factors that are affecting your NPS Score. As the NPS score only identifies if there is a problem or not and could not define the actual cause because the overall NPS Score is a combination of so many different factors that are contributing in the customer journey and customer experience. Usually there are certain factors which have less impact on overall NPS Score but have more impact on other factors which are contributing in the NPS score, so it could get very complex to identify the problem without any too. That is why the NPS Driver Analysis is used. The NPS driver analysis will tell you why your customers want to promote your products and services or why your customers don’t want to promote your products and services.
Basically the NPS Driver Analysis is done using a follow up question or questions which is usually like CSAT Score (Customer Satisfaction Score). These questions are short, precise and could also have a rating grid, for example; how would you rate our Customer Service? Or how would you rate our packaging of the product [whichever the customer purchased]? That is how the NPS Driver Analysis is done. It helps a lot in determining the factors that are impacting on your net promoter score. Business can identify these factors and then take steps or make policies to improve everything accordingly.
See More: 7 Benefits of Customer Feedback System
Conclusion
The NPS Score or Net Promoter Score is a very important indicator. It measures the health of the customer relations with their brands. It also help business in highlighting the problems and finding their solutions. The NPS Score is also considered to be the direct measurement of a business’s strength and progress. Often business in Dubai and all around the UAE over looked the importance of NPS Score, but now a days more businesses are starting to conduct NPS Score surveys. There are different types of NPS Score, however the transactional NPS score is more commonly used methods.Before we start creating a survey we should first setup an objective. Then the questions and other details should be prepared as per the best practices mentioned above.
The very important component is the Customer Feedback System tool which should have at least all the basic features and functionalities that are required to conduct an effective NPS score survey campaign. Once the NPS Score Survey campaign is started the next step is to conduct an effective NPS Driver Analysis which will help you determining the cause and problem that is effecting the overall customer experience. RSI Concepts is a leading Customer Survey and Feedback System provider in Dubai, if you need any help please feel free to reach us out through our Contact Us page or leave a comment in the comment box below.
Check out this: Customer Feedback – Best Practices in 2021