“How likely are you to recommend our product to a friend or colleague?” Almost everyone has answered this question at some point or another for a product or services survey. Ever wondered what the significance of this questions is! This question is asked to gather Net Promoter Score (NPS).
What is NPS?
NPS TM is a customer loyalty metric developed by and a registered trademark of Fred Reichheld, Bain & company and Satmetrix .
NPS is a Net Promoter score and it’s the index for your product/service which indicates overall satisfaction of your customers. Respondent of the question is asked to provide a rating on a scale of 1 to 10, 1 being the lowest and 10 being the highest.
Sometimes along with the NPS question, respondents are asked to fill in the reason for the rating. It gives more insight and provides improvement opportunities.
The following diagram shows how a respondent is marked as a detractor, promoter or passive based on the score.
How is NPS calculated?
NPS is calculated for a product or service cumulatively.
The formula is as follows :
ABC Corp Ltd conducted a survey for their products, there were 120 respondents out of which 40 promoters and 60 detractors and 20 passives.
The final NPS score will be ((40/120) * 100) – ((60-120)*100) = 33 – 50 = -17
Jack’s burgers conducted a survey for their recently launched burger and out of 500 responses collected there were 400 promoters, 50 detractors and 50 passives.
In this case the final NPS score will be ((400/500) *100) – ((50/500) * 100) = 70
NPS is a measure for evaluating loyalty of the consumer to a product or service. An NPS question tries to find the likelihood of the respondent recommending the product or service to anyone else.
However we should note that we are not trying to measure the actual likelihood of repeat buying or recommendation.
Usually the approach is to trying to convert a detractor to a promoter by following up and taking corrective action for the respondent.
A NPS of more than 50 is considered to be excellent, while any positive NPS is considered to be good.
How can Salesforce help?
Salesforce Service Cloud could be immensely effective in capturing NPS and converting detractors to promoters.
A survey can be set up in Salesforce to contain a NPS question which can be hosted on the company’s website or could be sent out via email.
Cases can be created and followed up in Salesforce automatically when a respondent is a detractor or a promoter.
All tracking of the particular case and the respondent can be done within Salesforce and various reports could be created to observe the overall customer satisfaction.
NPS Dashboards and Reports in Salesforce
There are various reports and dashboards that can be created in Salesforce.
Here are a couple of samples:
- NPS Respondents this week :
The graph above in Salesforce tells us, how many surveys taken last week and the count of detractors, passives and promoters.
- Top performing accounts based on NPS
The above dashboard shows the Accounts Vs NPS score.
The Net Promoter Score could really serve as an effective indicator to measure customer satisfaction. Salesforce helps organisation collect NPS from their consumers and convert them to promoters.
If you have any further questions or want to talk to one of our consultants about implementing a NPS solution for your organisation,