Considered nps. We measure the consumer loyalty index (NPS). Case studies from various industries. Measuring customer loyalty

01.12.2019

NPS (English NetPromoterScore) - an index showing the commitment of consumers to a company, product, service. Otherwise, the NPS loyalty index is called the index of willingness to recommend and make repeated purchases in this company.

As a rule, the NPS index is measured several times throughout the year and several years. Continuous measurement of loyalty allows you to work effectively on obtaining competitive advantage and improving their performance.

There are a huge number of tools on the Questionnaire for collecting the opinions of respondents through surveys - email newsletters on the client base, surveys among the participants of the Anketologist's own panel of respondents (suitable for large companies with a branch network throughout the country), etc.

An example of calculating the NPS loyalty index

For example, you received 100 responses to your question. 10 of them were in the range of "critics", 20 - "neutrals", 70 - "supporters". Subtract 10 critics from 70 supporters. You will get the number 60. This is your index consumer loyalty.

However, if internal indicator, equal, for example, 33, is considered bad, then the external (compared to competitors) may be quite high when compared with the average loyalty index for organizations with a similar (similar) field of activity.

Benefits of Measuring Loyalty with the NPS Index

NPS statistics can be directly correlated with the success of the company in the eyes of consumers. The index is used by large (Apple, American Express, JetBlue) and small companies due to a large number of advantages:

Speed. One question is all that is required to calculate the indicator. You can create such a survey on Anketologist in a matter of minutes, and conduct it in a couple of days.
Simplicity. The Consumer Loyalty Index uses generally accepted technologies, so everyone can easily understand it.
Comparability. You can compare your results with those of your competitors, as hundreds of companies also use NPS.

Using the Questionnaire service, it is easy to measure the NPS customer loyalty index.

Literally 2-3 days ago, I was simply indignant at the incompetence of a journalist from the Irkutsk branch of Komsomolskaya Pravda when placing ads on their website.

And now, when I have calmed down, my emotions have subsided, I understand that I will never again turn to them myself, but I will not advise my friends either. But maybe that's a good thing!

Because I am writing this article about the nps customer loyalty index, which should save you from stupid mistakes of your employees and help you make money.

The tool is extremely cunning, atypical for Russian market and therefore no less interesting. After all, whoever uses new technologies first wins the competition.

I understood you

Brief background

We have in marketing consulting there is a coffee shop. The owner has money and we are slowly investing it in advertising and marketing.

Recently, a journalist from the Irkutsk branch of Komsomolskaya Pravda called the manager and offered to place an advertising article on their website in the section “Where to go on February 14th”.

The cost was only 3,000 rubles, and almost 50,000 people a month. We considered that this profitable investment and gladly agreed.

Declaration example

A journalist came, we talked about the coffee shop, its advantages, showed everything we could, gave all the contacts, pictures and everything you need to create a professional and selling article.

Problems began immediately after receiving the money. The apotheosis of all this was the release of our article without any contacts, links to the site and other things (for the sake of which, in fact, everything was started).

When I pointed out all these oversights, they didn’t even ask for forgiveness, but simply said that it was the site’s editor’s fault and “if possible, we will fix everything.” Believe it or not, they fixed it as soon as I demanded the money back.

Why am I all this?

Moreover, the unprofessional actions of one journalist reduced the nps loyalty index to this publication by a couple of points. And this despite the fact that advertising market now and so falls, and they would cling to each client.

But, most likely, you have not even come across such a concept as the nps index, how it is considered, what it shows and how much it affects your money. However, many of you have seen similar pictures on websites or in.

Collection feedback

Remember the last time you called your customers a month or even 2 after the purchase (when the emotions from the purchase had already subsided) with one question:

It is necessary to answer on a 10-point scale, where 0 is “I will never recommend it to anyone”, and 10 is a Definitely recommend”.

Most likely never. But this is a very important index, but, unfortunately, very rarely used in Russia. As long as they only resort to it large companies who understand that there are no trifles in business.

WE ARE ALREADY MORE THAN 29,000 people.
TURN ON

Calculation instruction

So, let's move on to the very steps of calculating the NPS index (Net Promoter Score / Customer Satisfaction Index).

Step 1 - Conduct a Survey

The first step is to interview at least 30-50 customers. There are many options for conducting a survey. I will now describe a few of them.

Telephone survey. You are already doing well and are collecting contacts of your customers? And form them into a single client base?

For those who are still “in the tank” and are just gathering their thoughts, I wrote an article about and about what is most important in it and how not to miss anything.

Important. The survey must be conducted by a completely independent person. Or "Service Director". I don't know why, but as soon as people hear this phrase, the truth starts pouring out of them.

Questionnaires for clients. Here, as an example, the basics for the questionnaire -. Use it as terms of reference for a designer, decorate in your corporate style.

Online survey. Alternatively, you can use special services that create online surveys with answers that you simply fill out.

Leave the calculations to the service, it will do it automatically. It is very convenient and saves a lot of time.
For example, SurveyMonkey can help you with this.

Online survey service

And all because now you can conduct such surveys (the functionality now allows) right on the sites social networks where people feel much more comfortable and are more willing to answer you.

How exactly you will conduct the survey is up to you. Choose the method that is most convenient for you and suitable for your niche.

Important. In no case do not give any clues to the respondents, otherwise you will simply kill the entire survey.

Step 2 - Record Results

No matter how good your memory is, record all the results. It's one thing when you call 5 clients and remember everything in detail, another when there are already more than 100 of them.

Ideally, if you add all this information to the client card in your CRM system, but excel or notepad will also work.

Step 3 - Divide the interviewees

All customers you interview should be divided into 3 categories. Very soon you will find out why this is necessary, but for now, ruthlessly share:

9-10 - promoters or supporters, that is, people who like your product / company / brand and are ready to recommend it to their friends and acquaintances;
7-8 are neutrals, in other words, your passive clients. They are satisfied with everything, but they are not ready to recommend you;
0-6 - critics, that is, those people who are not satisfied with your product or company and will not recommend it to their friends.

Poll results

Each promoter is guaranteed to bring one to your business additional client. You can be completely sure of this.

A critic, on the contrary, will take up to 4 clients out of your business. Moreover, it does not matter at all what he answered in the survey (0 or 6), if he fell into the category of critics - this is very, very bad for your business.

Especially in the era of the Internet, when news, and even more so complaints, scatter faster than the speed of light.

Step 5 - Calculate NPS

The final stage is the calculation of the loyalty index itself. There is a simple formula for this:

NPS Formula

That's all. Now you know the nps customer loyalty index in your company. And as I already wrote, in Russia, few people measure this index. And very in vain.

For example, in the USA this is done by any more or less self-respecting company. And it’s no coincidence, because according to Stanford University research, the higher the company’s NPS (that is, the closer it is to 100), the more successfully it will develop.

And this is quite logical - the success of any company directly depends on the loyalty of its customers, or, to use the Russian proverb: “Do it right, it will be fine!”.

The best part is that it doesn't matter who your customer is to calculate this index. Whether you sell him shawarma at the train station or supply equipment for rockets for $15 million.

The system is completely universal and works for any company, be it b2b or services, and maybe even b2c.

Bonus

I think you know such a person as. Of course, because in Russia Igor Mann has long been associated with the word “marketing”.

And not so long ago, we interviewed the number 1 marketer in Russia (although the Federal Antimonopoly Service forbade him to be called that). Among the first free ways to increase sales, Igor named the consumer loyalty index.

What is most surprising, it turned out that the measurement of this indicator has a positive effect on sales not in a delayed moment, but what is called here and now.

That is, people begin to remember you and, accordingly, make repeated purchases.

Now for the shocking details. Imagine a car service. Pretty good and clean. There are 10 boxes, which measures the NPS index. Nonsense? It can not be? What for!?

But our client from Komsomolsk-on-Amur does not consider this nonsense and unnecessary action. What's more, he found that after each phone survey, they sign up about 7-8 clients for their services.

Here's a free tool to increase sales that you've obviously never used.

Briefly about the main

In order for the information to be fixed for you better, I suggest you watch a short video on this topic.

Summing up, what can I advise you? Conduct a survey to find out the consumer loyalty index in your company,

If it is above 50, then, in principle, everything is not bad in your company, but there is always room for growth;
If it is below 50, then urgently start investing in customer focus.

And here is an example: Vimpelcom (aka Beeline) systematically monitors the level of NPS.

So why am I, in 2014, the customer loyalty index in the company turned out to be the lowest in their entire history.

But, thanks to the timely measures taken, they were able not only to restore the level of NPS, but also to make it the highest among the big three players cellular communication(“Megafon”, “MTS” and “Beeline”).

P.s. And by the way, since I am now in the category of critics of the Irkutsk branch of Komsomolskaya Pravda, I should, in theory, steal 4 clients (present or future) from them.

You see, the management will see this article and come to their senses that it does not matter how much money the client brings in the first transaction, 3,000 or 30,000 rubles. The only thing that matters is whether he becomes loyal after that or not.

The NPS customer loyalty index shows the degree of satisfaction of your customers: how satisfied they are that they will recommend you to their surroundings. The calculation of the NPS index must be done constantly with some frequency in order to have an idea of the mood of customers. We will analyze this issue in more detail in our article.

NPS consumer loyalty index

This is a metric that tells an entrepreneur how strongly his customers are loyal to his product or his trademark. More precisely, this indicator characterizes their willingness to make repeat purchases in your store (use your services again if you are engaged in the provision of services).

Moreover, it shows not only how willingly customers will come to your store again, but how willingly they will recommend it to their surroundings - friends, relatives, colleagues, etc.

NPS Loyalty Index stands for NetPromoterScore. If translated from English literally, it means "Net Support Rate", meaning, of course, customer support for your product, brand.

Adapted into Russian, this term is translated as "NPS Loyalty Index".

Clients for life. How to build a long-term relationship with a buyer. Video

Calculation of the NPS index

Calculating the loyalty of your customers to you, your business or your product is quite simple. This is done in three stages.

1. First, you need to conduct a survey of customers, asking them one single question: "With what probability from 0 to 10 are they ready to recommend your company (product, brand, brand) to their environment?"

"From 0 to 10" is a ten-point scale, where the extreme values are:

10 - “I will definitely recommend your store (brand, brand) to all my friends, relatives, colleagues!”;
0 - "Never, for anything, under no circumstances will I recommend you to my surroundings!";
From 0 to 10 - variations from "Never" to "Always, necessarily."

Those who rated the likelihood that they would recommend your business to their surroundings at 9-10 points. In the terminology of the developers of the loyalty indicator, this category of customers is called "Promoters", literally "Promoters", that is, those who will definitely support and recommend your business to others;
The second group - those who rated this probability at 7-8 points. These are the so-called neutral buyers;
The third group - those who rated the support of your brand with a probability of 0-6. In business terminology, this category of buyers is called "Detractors". Literally translated from of English language this term means "Defamers" or "Those who distract", that is, opponents of your brand, those who do not like what you sell.

When calculating the NPS index, you can not pay attention to the exact translation of terms, the essence and importance of the loyalty indicator do not depend on them, they are given for general information.

3. The third stage is, in fact, the calculation of the NPS index, which is found as the difference between those who will definitely support you and those who will not do this in any case.

Calculation formula:

NPS Index= Share of supporters – Share of critics

Let's say you surveyed 100 customers.

Of these, 55 people (55%) answered that they would definitely recommend you to their surroundings.

Another 30 people (30%) said that everything is absolutely unimportant to them, they are not interested in anything, they are neutral about everything.

And the third group, 15 people (15%) - these are those who did not like you, who will not recommend you, your opponents.

NPS indicator - calculation:

Index NPS = 55 – 15 = 40

The survey itself to identify loyalty of your customers can be done in the following ways:

Inquire directly at trading floor by writing down the answers;
By offering the buyer a questionnaire, for example, at the checkout;
By phone;
Online on the company's website (not only concerns online stores).

The latter method, by the way, is the most convenient for both the entrepreneur and the client, when you do not have to spend time filling out questionnaires and communicating with store employees, you can evaluate your attitude towards the company at any convenient time.

Advantages and disadvantages of the NPS index

The main advantage of measuring the loyalty index of your customers is that it is simple and accessible to any entrepreneur. The question asked to buyers is extremely specific, it does not require time to think, search for solutions and answers.

Despite its simplicity, this method is quite informative. It shows quite accurately how your business satisfies your buyers and customers.

disadvantage this method, according to experts in the field of marketing, is that it is still somewhat one-sided, so-and-so the assessment is made on the basis of two categories - supporting the brand and criticizing it, when a large number of customers do not belong to either the first or the second category.

In addition, the calculation of the NPS index is one of the methods for assessing business performance. When developing important management decisions experts and specialists recommend not only relying on this method, but also on the results of wider and more thorough studies.

At the same time, it is necessary to calculate the loyalty indicator, it must be done constantly, with some frequency, in order to know how the attitude of customers towards your business is changing so that, if necessary, promptly make the right management decisions.

Increase customer loyalty with the Business.Ru CRM system. In the program, you can save all information about communication with the client: phone calls, correspondence, execution of contracts.

How to increase the NPS index

There are no recommended values for this index, it all depends on the type of business and on current situation in him.

Some of the experts say that it should be no less than "50" and, if it is lower, it's time to do something. For someone, more precisely, for some business and for some situation, the value of "30" can be satisfactory.

General rule: the index must not be negative. In this case, it will turn out that there will be more of those who are unequivocally negative towards you than those who are unequivocally positive.

In this case, urgent action needs to be taken. This means that it is necessary to come up with and implement one or another or several customer loyalty programs, loyalty programs. There are many ways to do this:

1. Discount program loyalty. These are various discounts, discount cards, including those with the so-called CashBack, that is, cash back. This is when from each purchase a small part of its value, this is usually about 3-5%, is returned to the card holder (buyer);

What is most important in business? Of course, a satisfied client who will pay you regularly and is ready to recommend your company to everyone he knows. And one of the most common ways to measure customer loyalty to a company is the NPS index.

What is NPS

The NPS loyalty index, from the English Net Promoter Score, can be translated as a net promoter index. NPS is a measure of willingness to recommend a company or product. The promoter of the company is a person who is ready to recommend the company. NPS is sometimes referred to as Frederick Reicheld's Loyalty Management Technique.

The NPS Loyalty Index is a relatively recent development, first formulated by Frederik Reicheld in 2003. His article on NPS was published by the Harvard Business Review and discusses customer loyalty and the growth of the company's profits. Later, The Book of True Profits and Real Growth was released, in which Reicheld continued to describe the relationship between revenue and customer loyalty.

Why NPS is needed

Reicheld based his point of view on a study of more than 400 companies represented in various business sectors. The main topic was to compare the growth rate of the company and the industry with the NPS index. The most striking relationship was found in companies where the level of service is important, since the client often communicates with representatives of the company, for example: passenger air transportation, insurance and car rental. In the future, many large companies began to use the NPS loyalty index in their work.

Quarterly NPS changes help companies compare themselves to their main competitors and understand how effective the measures that the company uses are.

Most major players in the Russian telecom market measure NPS. So, among the Big Three operators, Beeline had the lowest NPS in 2013. However, thanks to the client-centric strategy announced in 2014, the company managed to raise this figure and come close to MTS, assures CEO Vimpelcom Mikhail Slobodin.

“In the fourth quarter of 2013, unfortunately, we recorded a historical anti-record balance between those who recommend us and those who categorically do not recommend us. The gap with our competitors was simply catastrophic. Now we can already talk about it - then we modestly kept silent about it. The gap that we had more than a year ago, this simply cannot be allowed in the industry. And this, in fact, was reflected in the outflow of our key customer base. In 2014, we invested in making the client trust us again and stop running away from us like hell from incense. And over the past four quarters, we have consistently improved this indicator, for the first time in the history of VimpelCom over the past five years. Now we are almost on par with MTS, a little bit left to Megafon,- Slobodkin said in an interview with Vedomosti.

How to measure NPS

To measure the NPS index, a small survey is conducted, up to 10 questions. One of the questions sounds like this: how ready are you to recommend a company/product/service. The participant needs to enter a value from 1 to 10. According to the results of the survey, all participants are divided into 3 groups:

10-9 points - promoters, loyal customers who are ready to recommend;
9-7 points - passive, generally satisfied, but not ready to recommend;
0-6 points - dissatisfied, definitely will not recommend

The NPS index is calculated using the following formula:

NPS = share of promoters - share of dissatisfied

The NPS index is faithful assistant on the way to creating a dynamically developing company that will change the market in ten years.

What is eNPS

eNPS from the English Employee Net Promoter Score is an index of employee loyalty. Not so long ago, along with the development of the NPS index, they began to conduct surveys among employees, called eNPS by adding the word employee to the abbreviation.

Any manager knows that the company has external clients and internal (employees) and how satisfied the internal client is, the external ones are also satisfied. Already touched on the topic before. The eNPS index is a great tool to understand how ready your own staff is to be a promoter. A high eNPS will help you lower your NPS significantly, which means you'll save money on hiring and onboarding.

Just like NPS, the employee loyalty index is recommended to be assessed at least once a quarter. This will give you an idea of where your company is heading. In addition, it is worth evaluating the indicator not only for the whole company, but also for individual divisions. The value of the eNPS index is greatly influenced by the immediate supervisor.

Especially to determine the degree of customer loyalty to your project, the NPS index was created.

What is NPS customer loyalty index?

The NPS (Net Promoter Score) customer loyalty index is a metric that companies use to determine the attitude of customers towards them.

See also Customer Loyalty Program: 6 Metrics to Measure Customer Loyalty

Companies with high NPS have more opportunities to grow and profit in the long run.

How likely would you recommend this company to a friend?

Answers are based on a ten-point scale.

What formula is used to calculate the NPS index

Depending on the responses of buyers, they should first of all be divided into three following groups: supporters, neutral consumers and critics.

Supporters (customers with a score of 9-10). They can be described as brand ambassadors who are enthusiastic about the company.
Neutral consumers (customers with a score of 7-8). People with a neutral attitude towards the company, who would not spoil the reputation of the brand.
Critics (customers rated 0-6). Unsatisfied customers who can damage a brand's reputation with bad reviews.

After allocating your customers to the appropriate groups, you need to calculate the company's NPS index using the percentage of supporters and detractors. Neutral consumers do not participate in the calculation.

NPS Formula

Company NPS = (% supporters - % detractors) x 100.

For example, if the survey results were 70% rated 9 or 10, and 10% rated 1-6, the result would be (70% - 10%) x 100 = 60.

NPS 60 - very good indicator since most customers are supporters.

What values can the NPS index take?

NPS can vary between -100 and 100, with -100 being the worst and 100 being the best. In general, an NPS above 30 is considered good, above 50 is excellent, and above 70 is excellent. Negative NPS is considered a bad result.

But before you set your sights on getting an NPS of at least 70, you need to take into account your niche, product offering, and pricing. Each company is unique, and there is no exact definition of what is considered a good indicator.

How do you determine if a company's NPS is good enough for its niche? Below are the NPS scores for various industries based on the Net Promoter Score Benchmark.

Why is it important to calculate the NPS index

The NPS customer loyalty index provides invaluable data on the overall mood of your customer base. Tracking your NPS index helps you effectively measure customer loyalty and satisfaction so companies can work on improvements. This is why many Fortune 500 companies regularly conduct NPS surveys.

In addition to receiving customer feedback, NPS also helps reduce customer churn (when a customer ends their relationship with a company). According to a study by Bain and Company, "supporters" tend to have longer and more profitable relationships with companies. Knowing all this, a company can focus on turning "neutral consumers" and "critics" into "supporters" by giving them best quality goods and services.

NPS Index Caution

Many companies, large and small, make the mistake of obsessing over NPS scores. While this is a very useful metric to track, customers shouldn't be treated like numbers. Regardless of the metric, when a customer takes the time to review, it's a great opportunity to deepen the connection with them.

Loyalty cannot be earned with numbers. Both before and after the survey, you need to build relationships with customers.
The challenge for the business is to measure NPS, seize the opportunity to engage in an open dialogue with customers, grow your business, products and services, and ultimately see how the satisfaction rate has grown.

conclusions

Many companies use the NPS index as a solution to measure customer loyalty and satisfaction. However, these data are valuable if and when the company acts on them. It is necessary not only to find out the NPS indicator, but also to understand what exactly led to such a result.

Also, do not focus on convincing critics - encouraging discussions with supporters are also useful. NPS is not just a number. When used correctly, it can solve user problems, improve processes, and spark innovation.

NPS customer loyalty index - what is it and calculation formula with examples

4.4 (88.57%) - 7 ratings

Based on materials:, 10/12/2017