Utilising NPS for CX Success.


Customer experience is an important driver of business goals and the ultimate success in any business; and since the Net Promoter Score (NPS) was invented almost 20 years ago, there has been a clear correlation between a highly positive NPS score & increased customer retention, reduction in customer churn & improved customer lifetime value (CLV).

The Net Promoter Score is a measure of a company’s customer satisfaction, loyalty & advocacy. It is one of the widely used surveys to gauge customer engagement & satisfaction (i.e. how likely they are to recommend your business to a friend or colleague)

NPS is a great indicator of growth when businesses focus on the things their company is doing well and identify the ‘detractor issues’ which should be used as a warning sign of where the company is struggling to meet its customers’ expectations. It is for this very reason, that NPS is now part of most Key Performance Indicators (KPIs) for companies all around the world.


So how do we measure NPS?

The NPS score is simply computed by subtracting the percentage of detractors from the promoters. Firstly, we want to gauge how a customer feels about your business by asking one simple question: How likely are you to recommend Product XYZ to a friend or colleague on a scale from 0 to 10? 

Here’s a breakdown of how the 0 to 10 scoring works:

0 – 6 = Detractors – people who are unhappy customers who may churn (these account for 80% of negative word of mouth!)

7 or 8 = Passives – People who are somewhat satisfied with your product or service.

9 or 10 = Promoters who love your offerings and are fans of your business (positive word-of-mouth marketing)

The overall scores range from -100 to +100. A score of zero or below is a clear red flag and indicates an immediate need for collective action by all team members to make the necessary adjustments that will remedy and negative into a positive. 

A score of less than 49 shows that there is a need for improvement, 50 – 69 shows strong performance and a score above 70 is amazing!

When a company has this data collected and analysed from its customers by an expert like HOED Research, it can develop targeted strategies to manage each category of customers respectively.

For example, promoters are excited, happy and loyal customers therefore, it is often recommended that the company should engage them frequently to get referrals & use them as brand ambassadors who enhance new customer acquisition efforts.

Passives need to be handled with caution because they are neither enthusiastic nor disinterested in the brand, they can easily be turned into promoters when the company takes time to investigate the particular reasons they are still undecided.

Detractors on the other hand are ones to actively watch out for and handle promptly and professionally to avoid any likelihood of damage to the brand’s reputation. It is also important to discover the issues that caused the unpleasant customer experience by adding some qualitative fields to the survey.

Our goal at HOED Research is to help evaluate how your customers respond and to provide you with critical feedback that will assist you to create “brand advocates” rather than passive consumers.

Are you ready to start creating meaningful customer experiences? If yes! Contact Us Today for more information.