Job Location
User Feedback and Validation
Net Promoter Score (NPS)
Net Promoter Score (NPS) is a widely used market research tool that measures customer loyalty and satisfaction with a single question: "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?" Responses are used to classify customers into Promoters (9-10), Passives (7-8), and Detractors (0-6).
BUDGET
4
/5
Cost-effective as it primarily involves simple survey tools and data analysis software
EFFORT
4
/5
Moderate effort required to set up, distribute, and analyze surveys, but largely automated once established
IMPACT
5
/5
High impact due to its direct correlation with customer loyalty and potential for fostering organic growth
PRODUCT LIFECYCLE STAGE
Post-Launch, Growth and Scaling
GOALS
Measure Customer Loyalty: Gauge the loyalty of a firm's customer relationships.
Predict Business Growth: Use NPS as an indicator of potential growth through customer retention and referral.
Improve Customer Service: Identify areas of customer dissatisfaction to direct improvement efforts.
IMPLEMENTATION
Survey Deployment: Send out the NPS question via email, in-app, or through customer service interactions.
Collect Responses: Gather and record the scores from customers.
Calculate NPS: Subtract the percentage of Detractors from the percentage of Promoters.
Analyze Feedback: Follow up with respondents to understand the reasons behind their scores.
Implement Improvements: Use the insights gained to address areas of concern and improve the overall customer experience.
Monitor Changes: Regularly measure NPS to track changes over time and assess the impact of improvements.
TIPS FOR TESTING THE RESEARCH
Segment Responses: Analyze NPS scores by customer segment to identify specific needs and concerns.
Continuous Measurement: Regularly measure NPS to keep track of trends and the impact of changes.
Follow-up Questions: Include open-ended questions after the NPS question to gather more detailed feedback.
AI PROMPT
Could you analyze this month’s NPS data and summarize the main reasons provided by Detractors for their low scores?
EXAMPLE
A subscription-based video streaming service regularly uses NPS to evaluate customer satisfaction. Following a noticeable drop in scores, the company conducted follow-up interviews and discovered that users were frustrated with the platform's navigation. The service responded by redesigning its user interface, which led to a significant improvement in subsequent NPS scores and user retention rates, illustrating the power of NPS to drive meaningful changes based on customer feedback.
Try using Qualtrics.com, Pendo.io or SurveyMonkey.com to implement an NPS score. Many companies offer the ability to collect this information.