“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 overall customer 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 also for its ability to measure customer loyalty quantitatively. 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.
- If a customer scores you as a nine, they are considered “promoters.”
- If they score you seven or an eight, they are “passive”—meaning they do not quite love you nor will they leave you.
- A score of six or lower classifies your customer as “detractors.”
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. At the same time, 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 question, 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 have a week to fix your top two priorities, you must know which determinants or variables will yield 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 increases, it is likely that the second question score 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?
Net Promoter Score 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. Read this detailed article to understand what’s considered a good 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 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 most significant impact on Net Promoter Scores. Each customer will go through many touchpoints with your company as he or she moves along the customer journey.
4 excellent ways to collect NPS customer feedback
Now that we know how key driver analysis can help identify interactions and attitudes having the most significant effect on NPS let us look at how we can effectively collect feedback for NPS calculation. This will help you maximize NPS collection and use it to help make key improvements at various stages of the customer journey. Here are four key ways to gather maximum customer feedback for calculating your NPS.
Online customer survey tool or platform
Online CX management tools or software such as QuestionPro CX are great for tracking, measuring, and improving your NPS. It lets you effectively address detractors’ issues by determining patterns amongst your promoters and replicating them effectively. The tool is robust, provides excellent support, generates detailed reports, and offers a ton of ready-to-use online survey templates. You can integrate it with your existing tools to transform CX and deliver significant ROI.
If you are using a tool like QuestionPro CX, you can embed your surveys directly into the email. This is convenient for survey respondents and improves your NPS survey response rates by over 11%. Your NPS email surveys can be automated in the tool, sent when a purchase takes place. The tool provides other options, too, such as sending reminders, scheduling in batches, etc. You can customize your portal aa well as emails to resemble your brand themes and colors. This also improves response rates to CX surveys significantly.
Online NPS surveys conducted via pop-ups are highly effective when used efficiently. It would be best if you planned these out properly for maximum impact and customer feedback. Control of the deployment process helps you time the NPS survey right. Consider these examples; if you want CX insights right after a purchase, you can have your survey pop up at the checkout process. If the idea is to understand your customers’ interaction and experience with support, you may trigger a survey after a customer interaction ends with a support representative.
Apps and SMS
Traditional email for surveys can get boring and hence may get low response results. You need surveys that can be taken on the go via SMS, apps, or Whatsapp. This improves the response rate significantly; your respondents can take them while commuting or waiting for their cabs, etc. With an open rate of more than 90%, SMS is the most efficient and direct way to reach a customer.
Conducting NPS surveys is easy, with so many options available at your disposal. Maximize your surveys and business’s effectiveness by setting up your brand’s NPS around the consumer journey.
QuestionPro CX is an integrated system built around the Net Promoter Score that 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 than ever. How else would you know what they want if you don’t survey and measure?
Act with intelligence
Often, we have too much 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.