The aim through implementing NPS is understanding how your brand is performing and the number of satisfied customers you have. It highlights the need for immediate action if the score is too low -as it means that your brand is unable to meet customer expectations and this can potentially damage your brand image by negative word of mouth that these unhappy customers may spread.
The foremost thing in calculating NPS is to know its importance.
NPS is a quick, efficient, cost effective and easy to understand tool. It is a metric that is recognized across various industries and can be used to benchmark against competitors. It provides a mean to find out your performance in real time.
Too many benefits of NPS to just ignore it.
So, let’s go through some tips that can help us in calculating this score.
Generating maximum responses is vital for NPS calculation. You should study your audience and learn how they will be comfortable in contacting with you.
Remember; your customer might be angry with you!
So, asking them to fill out a survey/questionnaire is going to be difficult.
But it’s also important.
You have to know what went wrong and how you can improve it in the future. Explore options of online survey, in-app questions, emails, SMS, telephonic calls or physical interviews.
Choose an option or a combination that can generate maximum results for you.
Automate the NPS process so that the management is free to analyze the results and take appropriate actions on them. Use of specialized software that are linked with the online surveys is an ideal way to generate real time results. Such measures can also help you in taking multiple NPS responses from same customers. The responses can be scattered over the entire product/process life cycle. NPS is most effective when it gives you such a complete process coverage and you can analyze your performance at each life cycle step.
NPS in itself is just a number and can potentially be meaningless if you do not know what you do with it.
NPS has to have an effective management strategy associated with it. It should be able to cover all required steps arising from high detractor and passives levels. The management should be stringent enough to initiate ‘change management’ and should be robust enough to ‘close the loop’ with customers. NPS strives to achieve a coherent and collaborative organization. With confident monitoring and remedial steps in place; organization should aim to improve their NPS from their previous score and from the industry benchmark levels.
NPS is essentially a very easy to calculate and implement management tool with very high potential.
However, correct implementation strategy and understanding should still be developed to get maximum benefit.