The Net Promoter Score | Syno

How Net Promoter Score (NPS) leads businesses/companies to a better customer experience?

When a customer seeks information or plans to buy a product/service, she might recall her own experiences, search the Internet, or consult family, friends, or colleagues. The reviews of relatives or friends, therefore, have a great influence on consumer shopping decisions. If a customer has satisfying purchasing experience, not only will she return to the store next time, but will also promote the brand to other people. This is the reason why businesses are trying hard to improve their product customer experience. The question is, how can businesses know if a customer is satisfied with the provided product/service? Will she recommend the product/service to her relatives and friends? In trying to answer this question, the term NPS, or Net Promoter Score, was invented.

Table of Contents

1.What is NPS?

2.Why is NPS crucially important to businesses?

3.Types of NPS

• Relational NPS (rNPS)
• Transactional NPS (tNPS)
• Employee NPS (eNPS)

4.Syno International’s Customer Experience Solution

What is the Net Promoter Score?

The Net Promoter Score (NPS) first appeared in 2003 in the United States. It measures the customer’s willingness to recommend a product/service to relatives or friends. Therefore, NPS also reflects the level of customer satisfaction with a products and said customer’s loyalty to the brand.

NPS is measured through conducting customer surveys. A customer is asked to answer, on a scale of 0 to 10, his or her willingness to introduce brand to those around him/her.

Based on their answer to the above question, are then divided into 3 groups:

• Promoters (9-10 points): Your most loyal and enthusiastic customers. They are always willing to introduce your business to family or friends—potential customers in the future. They are often quite satisfied with the product and service after the experience and are likely to use the company’s products and services over and over. These customers are very valuable to your business and should be pampered as such. Businesses can take advantage of their enthusiasm by offering them discount packages to friends/relatives.
• Passives (7-8 points): Indifferent or passive people. They seem to be quite satisfied with the product/service but not confident enough to spread the brand to others. This group is at risk of switching to a competitor’s product if there are better options. It is quite difficult to make these customers loyal.
• Detractors (0- 6 points): These are known as critics to your product/service. They are unsatisfied or very disappointed with the product/service that they used. Not only will they not buy the company’s products again but also share these bad experiences with the people around them, causing brand damage. For this group of people, once identified, the company must take specific actions and create a monitoring plan before their negative feelings have too much an influence on the brand, and also find a way to regain their trust.