In Compass magazine you can find articles where we talk in more detail about customer acquisition and retention .
Improving customer service
Calculating the NPS indicator can help improve the customer service system . Poor customer service primarily affects the index and reduces its result. To increase customer loyalty, it is important to hear them and respond to the comments and wishes they indicate in the survey. Correct errors and re-measure NPS.
Development strategy development
You can use the assessment to outline development directions. The percentage of customers who are ready to promote you will help you differentiate yourself from competitors and understand your advantages. In the case of neutrals, the data received from them will indicate ideas for improving the product. From dissatisfied customers, you will be able to learn about your weaknesses.
This way, your customer base will give you answers on how to grow and develop further.
Increased trust
To measure the loyalty index, you need to regularly receive feedback from the audience. For many consumers, it is important that you offer to evaluate quality. Trust is also associated with the reputation of the business, the growth of the company due to customer focus .
For use within the company
You can also evaluate the level of loyalty to the company by conducting employee surveys. It will be useful to implement systematic measurements of team satisfaction in order to improve the atmosphere in the team and form a positive corporate culture.
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NPS formula
To calculate the index, you need to calculate the difference between promoters india phone number list and critics. The survey results are recorded as a percentage.
Let's give an example of calculating the index. You decided to conduct a survey to measure the loyalty metric. There were 600 respondents in total: 300 promoters, 200 neutrals, 100 critics: 300-100/600×100%=33%.
The survey result showed that the NPS score is 33%.
The NPS indicator value can be different and ranges from -100 to 100. A low indicator (from 0 and below) means that most customers are dissatisfied. Above 0, there is already a positive trend. In more detail, a positive indicator, as well as a low one, can be interpreted as follows:
50% and above — most customers are ready to tell their friends about you. Buyers really like the product, there are practically no dissatisfied or passive ones;
30-50% is the average NPS indicator, the company has room to grow;
0-30% - if after measuring the loyalty index you get such results, then this should be a warning sign, something needs to be changed;
An index showing negative values indicates that most customers are dissatisfied and there may already be negative reviews.
In practice, the situation is somewhat more complicated and such an interpretation does not indicate the real situation. The assessment depends on the field of activity, country, cultural characteristics and the market in which the company operates. For example, there is a study that provides the following data.
What NPS is considered good and how to evaluate the loyalty index
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