President, QuestionPro CX

“On a scale from 0-10, how likely are you to recommend us [company] to your friends or colleagues?” That’s the basic Net Promoter Score (NPS) question that many businesses today use to understand their customers’ overall satisfaction, based on their experiences. Because NPS is a single number that measures the overall experience, it’s nearly impossible to pinpoint which interaction(s) or touchpoint leaves a customer dissatisfied. In comes NPS Key Driver Analysis.

NPS Key Driver Analysis identifies the determinants that have the biggest impact on your overall NPS. NPS has been widely adopted not just for its simplicity, but most importantly for its ability to quantitatively measure customer loyalty. Before digging deeper, let’s make sure that we all understand how NPS is calculated. Based on a scale of one to 10, a customer falls into three categories.

  1. If a customer scores you as a nine, they are considered “promoters.”
  2. If they score you seven or an eight, they are “passive”—meaning they do not quite love you nor will they leave you.
  3. A score of six or lower classifies your customer as a “detractor.”

NPS Basics

Now that all of the groups are classified, take the percentage of promoters (nines and 10’s) and subtract the percentage of detractors (sixes and lower). Now, you have your Net Promoter Score.

NPS-Key-Driver-Analysis-How to Calculate NPS

If you haven’t yet, read our Beginner’s Guide to Net Promoter Score

 

Uncovering Customer Loyalty Determinants

Keep in mind that NPS itself does not tell the entire story. NPS provides a broad insight, which you can then use to gather deeper and more specific feedback. This broad measurement is most useful to benchmark your customer loyalty either historically or against competitors. However, there is much more to leverage when you drill down on the NPS key drivers. Let’s assume you have NPS numbers, week over week and month over month. Wouldn’t you want to know what determinants of NPS will move the needle?

It would be unrealistic to expect everyone who uses NPS to be experts in statistics. Many companies allocate resources to marketing research companies in order to uncover correlation and/or causation variables. NPS key driver analysis can answer common questions raised about NPS: what attributes of the purchase journey affected NPS the most or the least? Conducting a key driver analysis is crucial to determine statistically which features or experiences are having the biggest impact on Net Promoter Scores. Each customer will go through many touchpoints with your company as he or she moves along the customer journey.

 NPS Driver Analysis

NPS Key Driver Analysis

Knowing the impact on the overall NPS will help you focus and act on the determinants that have the largest impact on your customers, while understanding beyond the NPS number is the key to moving the needle most efficiently and quickly as possible. So, how do you know which interactions had the highest or lowest impact on the overall experience?

To help you answer this questions, QuestionPro CX offers an NPS Key Driver Analysis feature that will help you determine which attitudes and interactions have the biggest effect on your overall NPS. Like most people, you have limited time and resources. If you’re given a week to fix your top two priorities, it is critical that you know which determinants or variables will yield you the biggest return.

In QuestionPro CX, the NPS Key Driver Analysis widget uses Spearman’s Rank-Order to calculate the relationship between the determinant variables or questions in this case, which in turn, will give you the probable relationship between questions. For example, if the score of the first question of the survey is increased, it is likely that the score of the second question will increase, and this is all calculated based on customer data. A score of 0.5 is typically considered a high correlation and shows that it is enough of a trend to be a strong determinant. The average you will see is between 0.3 and 0.4. This makes life a little easier, right?

Act with intelligence

Many times, we are given too many numbers to focus on, and as a result, the exact opposite happens. Instead, we lose focus and start using our gut to help us determine our next steps. The feedback you collect is only useful when you act on it. NPS key driver analysis is just one way to empower you with making the right decisions after your data has been collected and analyzed.

QuestionPro CX is an integrated system built around the Net Promoter Score that is dedicated to helping you understand your customer, enabling organizations to act faster on the customer feedback collected from NPS surveys. Markets now are more competitive as ever. How else would you know what they want if you don’t survey and measure?

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