Net Promoter Score Analysis

Have you ever doubted the legitimacy of the NPS customer feedback system?

A recent case study found that Twitter complaints about American Airlines customer service directly correlated with their NPS score and competing airlines saw similar correlations. Properly performed analysis of NPS allows for such comparisons.

There are several stages of NPS that are often done ineffectively, one of those stages is analysis.

Done right, NPS has been proven as a concrete program for measuring customer sentiment and loyalty. This American Airlines case study is one such example.

There are many facets to a good NPS analysis. One of them is understanding what you’re measuring up against.

What is a good NPS?

It’s important to know what the benchmarks are when you’re trying to measure the success of your business. So no matter what business you’re in, if you are using NPS, you should be asking, what is the benchmark NPS score?

The tricky thing is, that NPS benchmarks vary according to country, industry and economic climate. So what you will need to find is the benchmark for your industry, preferably in your country and hope that it’s from a recent study.

Calculating your NPS score

Now that you’ve got an idea of what you should be measured up against, it’s also important that you figure out how to manually calculate your NPS score. Why should you do this if you already have the software that does it for you?

Well to truly understand your NPS score and how it reflects on your company, wouldn’t it be a good idea to know how you get there? In addition, knowing how to calculate your score will better equip you to notice anomalies. So find out how to do it here. 

Understanding the importance of 0

Zero, being the worst score that someone could possibly give you may seem like a negative to receive, but unlike one’s and two’s these people had a negative experience and they want to tell you about it rather than just drop you like a tonne of bricks.

The great thing about zero is that if you get in touch with these people, they will tell you exactly how you can do better. And that is a goldmine. In addition, zero’s stick around because they are still engaged with your company and are more likely to be turned around from detractors to promoters.

Cutting out statistical noise

The difficulty with customer feedback is that engagement plays a major part in accuracy. At any one time, regardless of which customer feedback program you are using, you are only obtaining data from a small sample of your customers. It starts out as the sample you have picked and it ends as the percentage of the sample that chose to engage. Hence any peaks and drops may be a result of chance.

So how can you rely on customer feedback at all? There are a few ways to exclude statistical noise. The first is to use a margin of error calculation the other option is to use the Chi squared test.

Using Kano to focus your NPS program

There are a lot of moving parts to NPS, and it’s easy to get distracted by the wrong thing and potentially lose focus on the thing that will make the biggest difference to your business.

One way to help you prioritise your focus and manpower is to use the Kano technique. It classifies all services attributes into hygiene, performance and excitement. This technique allows you to classify service attributes based on the reactions from your customers if these attributes are missing.

Therefore, it can be a great way to ensure you focus on what is needed and what will bring you the most success.

Reporting on your Net Promoter Process

About 3 minutes after your first Net Promoter® survey goes out, management will be pounding the desk for a report with charts, analysis and recommendations.

The question is, apart from a simple chart of scores, what else should be included in your best practice Net Promoter reporting pack?

In this post we review a best practice Net Promoter reporting format.