The Net Promoter Score® (NPS®)
Directly Determine Customer Satisfaction
Determining customer satisfaction is not always easy. It is not always immediately clear why purchases have been canceled or negative reviews given. The US developed Net Promoter System® with the Net Promoter Score (abbreviated: NPS) at its core, companies can use a simple and proven methodology to collate and evaluate customer satisfaction through direct feedback.
NPS is a type of micro customer survey that combines a rating scale from 0 to 10 with a free text field. Customer participation is requested, for example, via email, as an in-app feature or via a website. It provides honest customer feedback where each participant can justify their answer in the accompanying text field. The same question is always asked: „How likely are you to recommend X to a friend or colleague“, where the name of the company, product purchased or the service used takes the place of „X“.
Comparing the Net Promoter Score
The data obtained clearly shows the marketing department which way the wind is blowing and highlights potential for both improvement and new strategies. Ongoing use of NPS enables benchmarking, both for internal control and for external comparison with competitors. By comparing your previous values with current ones, you can also track the relative success of your own strategy implementation. This supports companies in maintaining their competitiveness. Evaluating the additional comment provides the company also receives unfiltered feedback and therefore valuable information on the specific customer pain points. Such customer feedback is of enormous value for the further development of every company
In short, a comparison of scores with that of competitors or, if applicable, your own partner company only makes sense within the same country and industry. Mentality and service expectations differ from country to country. For example, the average NPS in Germany falls generally rather low in international comparison. Whilst customers in the USA express their fullest satisfaction with a 10, this value is lower in Germany and China and is 7 to 8. In Malaysia too, the maximum value is 7, and points 8 to 10 are practically not used. In Germany, a rating between 7 and 8 can be considered very good, which must also be taken into account when evaluating the numbers.
Determining Employee Satisfaction Using eNPS
In addition to using the Net Promoter Score with customers, it can also deliver important insights into employee satisfaction. If the Net Promoter System is combined with the collection of the eNPS (Employee Net Promoter Score), it becomes an instrument that can serve both employee retention and crisis management. The measurement of employee loyalty through an anonymous survey on the likelihood of recommendation gives important indications of improvement potential.