NPS is essential in business. It strongly predicts growth potential, customer satisfaction and brand reputation. It is easy to measure, but easy to misinterpret. Companies also often don't know how to maximize the information.
NPS measures customer satisfaction with a product and their willingness to share it. All using a simple question, "On a scale of 1-10, how likely are you to recommend this product/company to your friends or colleagues?"
The final Net Promoter Score is one of the most important metrics for a company. It is closely related to:
NPS is replacing difficult and expensive public opinion polls, mainly due to its simplicity and reliability. Invented by Frederick F. Reichheld and first introduced in the prestigious Harvard Business Press in 2002, the article was called "The One Number You Need to Grow" and is definitely worth reading.
A scale of 1-10 indicates the likelihood that the customer will recommend the product/company to a friend or colleague. 1 indicates not likely, 10 very likely.
Depending on how many points each respondent answers, you can divide them into three types:
You calculate the total NPS score as the percentage of critics subtracted from the percentage of promoters:
NPS = % of promoters - % of critics
Let's illustrate everything with an example:
Testuj.to was testing the new XYZ mop. 50 testers took part in the testing. 35 of them rated the probability of recommending the product to friends as very high (they answered 9 or 10). 8 testers chose the answer 7 and 8. We call these values neutral and do not include them in the calculation. Finally, 7 testers selected a score between 0 and 6.
NPS = loyal testers - disloyal testers
NPS = 56
The NPS ranges from -100 to +100. Negative numbers mean an excess of critics, positive numbers an excess of promoters.
Take anything from 0 as a positive result. It means more clients will recommend the brand than criticize it. Generally the top score is 70, but don't take this as an idol. For example, in 2018 Apple only had a score of 49, not even Google was great with 53. Always consider the industry average too. For example, in telecoms the average is 9, in car dealerships it's 43. And don't worry about a completely perfect score of 100 - no one in the history of business has ever gotten it.
For a negative result, consider a score less than 0. It means an excess of critics and a clear signal for activity. You need to start finding promoters, improving products or completely overhauling customer service. But again, consider the industry average. It can be negative ( for example -10) and if you then score for example -2, you are actually better off than your competitors.
The NPS questionnaire has only one question, the administration is very simple. However, to get the most information from the survey, it pays to make the design more comprehensive.
In the calculation, we use both the average score with a scale of 1-10 and the average rating with a scale of 1-5.
This helps clients discover important product features. Word clouds are based on the frequency of individual words, within positive (+) and negative (-) statements in reviews.
It is often the case that word cloud "pluses" are the same words as word cloud "minuses". So, for example, the word "skin" is mentioned in both positive and negative contexts, which makes sense given the category. In this case, the text of the reviews themselves should also be perceived to make the context of each word cloud clearer.
The Testuj.to stamp is a unique certificate for products that have been tested on a selected community, using our methodology, and received good results during testing.
It is given to products that have achieved a predetermined level of satisfaction from all testers during testing. In simpler terms, the stamp is only awarded to those products that have achieved an average of at least four stars out of a possible five in the satisfaction measure during testing.
The stamp always contains information that the product or service has been tested using the Testuj.to methodology. Recommendations are given by the selected community: