Many marketing professionals live in the delusion of using a million tools to collect data and, at the end of the day, not using even half of them for practical action. In one of those endeavors, you may have heard of Net Promoter Score and given it little importance. I will show you here exactly what it means, how to measure it the right way, and a comparison of the best tools in terms of value for money to adopt this strategy. What is NPS or Net Promoter Score? Net Promoter Score is a methodology created by Fred Reichheld, in the USA, with the objective of measuring the degree of satisfaction and loyalty of consumers of any type of company. The methodology became widely used because it is simple, flexible, and reliable. The objective of this satisfaction-survey model is to understand exactly how clients are feeling in order to improve their experiences regarding the product or service you offer, from a single question. Published for the first time in an article in Harvard Business Review, the official business magazine of Harvard University, in 2003, this methodology has been used by the largest companies around the world, showing surprising results about service quality and the actions that can be taken to transform each scenario.
How to measure NPS? The definitive question that defines how NPS works is:
On a scale from 0 to 10, how much would you recommend Company X to a friend or colleague? The answers to it are the basis for calculating a company’s Net Promoter score. The formula is simple: Net Promoter Score = % PROMOTER CLIENTS – % DETRACTOR CLIENTS = %NPS.
In this concept developed by Tracksale, clients are classified based on scores 0 to 10, in three different ways:
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Scores from 0 to 06 indicate Detractor clients: those are the clients who indicate that their lives got worse after purchasing the mentioned company’s product or service. They criticize the company in public and would never again do business with the company, except in extreme situations.
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Scores of 07 and 08 indicate Neutral clients: those are the clients who buy only the products and services that are really necessary. They are not loyal and are not enthusiasts of the company.
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Scores from 09 to 10 indicate Promoter clients: those are the clients whose lives improved after the start of the relationship with the company, product, service, or brand. They are loyal, give feedback, and are enthusiastic.
Based on Net Promoter Score results, companies can be classified into 4 zones, which in general terms exemplify how well the company is doing regarding client satisfaction. The zones are:
- Excellence Zone – NPS between 75 and 100
- Quality Zone – NPS between 50 and 74
- Improvement Zone – NPS between 0 and 49
- Critical Zone – NPS between -100 and -1
Comparison of NPS measurement tools Thinking about choosing the best tool to measure NPS in companies automatically, I did research among all competitors, which you can see from the matrix below:
Now it is a matter of choosing the tool that has the important features necessary for your business and starting to measure your NPS. Over time, these and other metrics will show you which paths to keep following and the strategies that need to be rethought for your audience’s best experience and the greatest return in your business.
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