An introduction to NPS - Net Promoter Score

Startquestion - Online surveys, forms, and tests 1
An introduction to NPS
Net Promoter Score®
Learn how to gather valuable data
With the use of a client loyalty assessment tool
Startquestion - Online surveys, forms, and tests
Estimated reading time: 5 minutes
Net Promoter, Net Promoter Score, and NPS are registered trademarks of Satmetrix Inc., Bain & Company Inc., and Fred Reicheld.
Customer Experience

The ultimate
question,
that you need.
You have to ask, in order to learn something - this statement,
although seemingly trivial, holds a strong message about which we
often forget in the process of creating customer experience,
company, brand, or product.
In the era of Big Data, analyzing consumer behavior, and behavioral
marketing, what is most important begins to lose its significance - the
client's opinion. This valuable data is absolutely uncountable due to
its complexity and diversity.
The Net Promoter Score (NPS) has been created precisely for the
purpose of counting that data. Fred Reicheld took care of it, and
devoted nearly 12 months to develop the NPS indicator. 4000
research participants, 6 different trades, 20 types of answers, over a
dozen scale variations. Nothing happened by chance in terms of
creating NPS. Dividing the respondents into three client groups
constitutes an effect of analyzing correlations between answers and
the customer's actual behavior. In every trade it was precisely the
question concerning the tendency to recommend that always
correlated - sometimes stronger, sometimes weaker, but always did.
NPS constitutes a perfect compromise between the precision of
measurement and its simplicity. It's an acclaimed standard of
measuring client loyalty, the newest "trend" concerning researching
satisfaction. The moment you start using it, will be the moment you
open your eyes to how much you still don't know about your clients.
The remarkable simplicity of NPS made it so popular - because it is
simply easy to understand. But what's most important is that it
allows you to take action here and now.
We invite you to learn the most important rules of NPS, which will
allow you to carry out this research with the use of our platform.
https://hbr.org/2003/12/the-one-number-you-need-to-grow

NPS question
By sending the ﬁrst NPS survey you completely change the manner of measuring the
satisfaction of your clients into a countable value which you can analyze in time.
This question is often referred to as the ultimate question.
How likely is it that you would recommend our company/product/service
to a friend or colleague?
0 1 2 3 4 5 6 7 8 9 10
Not at all likely Extremely likely

How does NPS work?
People invited for the NPS survey assess your service or product on the scale from  
0 to 10. After providing the answers they are divided into three groups:
0 1 2 3 4 5 6 7 8 9 10
Not at all likely Extremely likely
Detractors (Assessment 0-6)
Will quickly leave and is going to create
a negative PR. It takes as much as 5
positive opinions of promoters to
neutralize the bad opinion.
Passives (Assessment 7-8)
Won't recommend your services, but
won't also create a negative PR. If he or
she will ﬁnd a cheaper oﬀer, then he or
she will go to the competition without
hesitation. Very responsive to prices.
Promoter (Assessment 9-10)
Can talk very highly about your brand,
recommends you, buys more, and more
often than others. Forgives your errors
and enthusiastically helps to develop
your products and services.

NPS score Your NPS score is presented as a number on the scale from -100 to100.
Calculating the score is very easy. All that is needed is to perform a
simple calculation:
% promoters - % detractors = NPS score
Why isn't the % of neutrals included in the calculation? The NPS
method theory assumes that they do not harm or help your company.
You have to know this:
Taking advantage of our platform you do not have
to worry about creating the Net Promoter question
or calculations. Just select the NPS question from
the list or use a ready-made survey template.
The results of the survey including this question
will be updated live in collective results and
reports.
40,00
NPS Score
32%
Detractors
52%
Passives
72%
Promoters
56 answers84 answers 256 answers
6
12
17
12
23
5
2
43
12
54
86
0 1 2 3 4 5 6 7 8 9 10

Is my NPS score good?
We hope so! As you already know from the previous slide, the NPS score is presented
as a value on the scale from -100 to 100. The NPS standard assumes:
• a score between 0-50 as a good score,
• a great score is one between 50-70,
• a score above 70 is regarded as a world class score.
100-100
G
ood
G
reat
W
orld
Class
0 50 70

Your trade's
average NPS
score
Data concerning average NPS scores
achieved by the largest companies
in respective trades can be easily
found on the Internet. On the left
you can see example NPS scores
achieved in the most popular trades.
Avg. NPS score
Insurances 76
Finance and banking 78
Internet services 69
Aircraft transport 66
Internet entertainment 50
Tourism and hotel industry 36
Health insurances 35
Computer hardware 32
TV and cable services 32

Why does
NPS work?
It helps to understand the clients' perspective
and their needs.
Answers to the following open question provide a clear signal in what
direction should the changes concerning your service or product go, for
your company to generate larger profits.
You show that you care for the client's opinion…
… of course if you intend to do something with that opinion. It is very
important. If you won't do a thing with the provided opinion, then it's not
worth asking the clients. Consider, whether your company is ready to act.
You can easily compare yourself with the
competition.
Perhaps you are fighting for clients in a field which is completely
superfluous for them. A constant battle for promotions and lowering prices
often loses with the very human need of providing good quality services,
mutual trust, and advising.
Monitor your progress.
The first NPS question is just the beginning. In order for it to have more
sense, it should be repeated cyclically. Thanks to this, on the axis of time,
you will see how the satisfaction with your products or services changes for
better or worse.
Remember, the NPS method does not consist in being better than you
really are. Constantly verify whether the so called closed loop (meaning
efficiently reacting to the client's opinion) produces the target results.

Detractor Passive
How to act with every
type of client
Promoter

Detractor
(0 - 6)
Such a person is most often offended by customer service and the
heartlessness of your processes. One has to approach such people with
understanding, because a displeased client may very easily turn into a
highly committed critic of your services and products.
He or she won't ever return, or even worse, will start to encourage
others to do the same.
What's worth to do?
Regardless whether your company is to blame, or any other factor was decisive, it's always worth to say sorry
and show empathy.
If you are able to fix the problem quickly, do so. If the problem requires engaging other people and will take a
few days, propose a temporary solution. If the problem can not be solved, explain it to the client and ensure
that you will do everything it takes to fix it in the future.
How to change a critic into a promoter?
It's simple. It often takes just a little to make it happen. Even if you are unable to solve the client's problem, the
sole discussion may result in that your relations are going to undergo a complete change. A client who will
receive a rational answer, and a basic apology, is going to give your company a second chance much more
willingly.

Passive
(7 - 8)
Quite often this is a large group of clients. They are moderately
satisﬁed, but are easily convinced to take advantage of competitive
solutions.
How to hold them? The easiest way is to listen what do they want
and make them not want to think about change.
What's worth to do?
First of all, it's worth to take advantage of an in-depth question in the NPS survey and learn the reason behind
the score of 7 or 8. It often turns out that such a person is missing something in your services or product, and
which is not true. Thanks to this, you are able to show the client that you are "here" and able to help.
How to change a passive into a promoter?
First of all talk. More than with the others.
It's like marriage - if you don't talk with your partner, he or she focuses the attention on other potential
partners. It's better for partners to argue, because then they explain their problems and needs. That is why it is
necessary to talk with a neutral. As much and as little as that.

Promoter
(9 - 10)
This is your most loyal client. Is willing to often recommend your
services and products. Values the price and quality, and your company
is precisely what he or she has been searching for.
Show him or her that you appreciate the loyalty.
What's worth to do?
Propose participating in a special loyalty program or a membership in the group of the most loyal clients with
access to exclusive products, benefits, or content. Such a person is willing to efficiently recommend your
company to 5-10 people from its closest surrounding (home, work, friends).
How not to lose a promoter?
Show that you care for his or her opinion the most. Provide a sense of co-creating your organization, and
having an impact on changes.
Fun fact:
At Startquestion we also carry out satisfaction research. Our NPS is at 72 (as of June 2017). More than half of our platform's
promoters consist in people who have reached us due to recommendations.
Most often the case is that someone had the need to carry out a survey in the X company and asked trade friends where is it
possible to quickly and efficiently conduct such a research. That way he or she learns that a friend from the Y company
knows, uses, and recommends the Startquestion platform.
That way, we develop our system - always oriented on the needs of clients.

What's next?
The Net Promoter Score means more than just questions in a survey.
More than 70% of companies included on the Fortune 500 list, use this unique question in order to look
at themselves through the eyes of clients and fully understand their needs and frustrations.
Because the gathered knowledge is so easy to use, NPS constitutes the ﬁrst step to mastering the process of solving their problems.
This one key question opens the access to creating new, deeper relations. Allows to listen and change oneself into an empathic brand,
which inspires clients to be loyal.
Learn your score, learn your clients.
Additional questions: 
 
Call: +48 519 812 512 Write: contact@startquestion.com
How to start? 
 
Create your account
Net Promoter, Net Promoter Score, and NPS are registered trademarks of Satmetrix Inc., Bain & Company Inc., and Fred Reicheld.

An introduction to NPS - Net Promoter Score

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An introduction to NPS - Net Promoter Score