NPS measures the feeling of satisfaction or dissatisfaction of customers. All this with the aim of identifying weak points throughout the sales process and modifying them.
In recent years, NPS has become a priority for small, medium and large companies. Users don't just want to buy a product or service, but to have a positive experience. And studying their opinions and feelings is key to achieving this.
As a student of the Online Degree in Marketing overseas chinese in canada data from the European University, you will discover the origin of this tool, how it is used and how it is applied. Companies and brands from all over the world have grown faster than expected thanks to this tool.
What is Net Promoter Score (NPS)?
The Net Promoter Score is a metric generated by collecting information from users after their commercial relationship. Aided by the technology of NPS software or other tools, companies can interpret this data and make changes to retain customers, get them to return and recommend the brand to third parties.
Although the NPS formula is applied today thanks to the most advanced technology, it is not a new concept. In fact, the Net Promoter Score appeared in marketing offices in 1993, when the company Brain & Co developed these metrics and showed their results. A decade later, in 2003, the use of NPS spread internationally.
How does Net Promoter Score (NPS) work?
The NPS is closely related to the image that society has of a company. In fact, it is about measuring the perception that users have of the brand and their trust. Additionally, it also measures the consumer experience they have had and whether they would trust it again in the future.
But there is more, the NPS formula also allows for establishing behaviour patterns. In this way, companies can adapt their sales strategies with several objectives: helping the customer, making the experience easier for them and, above all, generating more revenue.
With all this in mind, it is worth understanding how the Net Promoter Score works. This metric has a series of phases that are summarized as follows in our Marketing Degree in Madrid :
Devise a strategy: a marketing specialist will propose a development plan. The part of collecting real user data will be vital in this.
Data collection: This is the most important phase of the process. A formula must be created that is comfortable for customers. This increases participation and encourages realistic data.
Analysis of the real scenario: with the data collected, an initial study is carried out and the company's level of acceptance is observed.
Action plan design: specialists propose improvements to the company.
Restarting the cycle: NPS is a type of information that should be collected and analyzed on an ongoing basis.
How is NPS measured?
It is important to understand how something as subjective as experience is measured. This is knowledge that must be acquired by those who decide to study the Degree in Marketing in Valencia or any other city in Spain.
Despite this subjective nature, specialists have managed to generate an NPS protocol that has proven its effectiveness. Of course, each company must adapt this base to its characteristics and needs:
Conduct a survey: A survey is the tool for measuring NPS. It can be offered in physical stores or sent by email for digital purchases. In general, it is reduced to one or several questions. The user can only respond with a numerical value on a scale of 1 to 10. The most common question is: would you recommend our services to a friend or family member? However, it can also be used to find out how satisfied they are with the product they purchased, or whether the customer has received good service from the employees.
Categorize responses: depending on each campaign, a series of numbers will be chosen to mark positive, neutral or negative responses.
Reviewing the responses: At the end of the process, there will be X number of simple responses: a number that identifies the user's experience. The marketing manager will be able to quantitatively assess the overall feeling in order to provide responses and suggest improvements.
Calculating the NPS: There is a formula that allows you to give a round number known as the Net Promoter Score. To do this, you just need to use the % of promoters and subtract the % of detractors. If the number is positive, the company is doing reasonably well. If it is negative, urgent measures will have to be implemented to change this widespread opinion.
