Customer Experience Analysis (Net Promoter Score - NPS ) Dashboard In Power BI
Net Promoter Score is a metric in market research used to measure customer experience, the likelihood of customers recommending a brand and to predict business growth. NPS is a core metric for customer experience which is critical for brand health in a competitive business landscape.
The key question asked to customers in a Net Promoter Score methodology is
“How likely are you to recommend this company/product/service to a friend or colleague?”
The participants are asked to rate their responses using a 0–10 scale with 0 indicating complete reluctance to recommend the company while 10 indicates complete enthusiasm to be a brand advocate.
The respondents are grouped in 3 categories:
· Score 0–6 are known as Detractors. These are customers who are unhappy with your brand and dissatisfied with your products or services. They are least likely to purchase from you again and are quick to give negative reviews about your brand.
· Score 7–8 are known as Passives. These are customers who are not unhappy with your brand but are not loyal either. They can easily be swayed to other brands that offer competitive options.
· Score 9–10 are known as Promoters. These are customers who are completely enthusiastic about your brand and highly satisfied with your products or services. They are quick to recommend you to other people and are excellent candidates to target for loyalty programs, cross-selling and up-selling.
Calculating the Net Promoter Score
To calculate NPS, subtract the percentage of Detractors from the percentage of Promoters.
NPS = (Promoters -Detractors /respondents )* 100
A Net Promoter Score can range from a low of -100 (if all customers surveyed are detractors) to a high of 100 (if all customers surveyed are promoters). NPS above 0 is okay because it shows there are more promoters than detractors (mostly passive) but is considered minimum level of progress. However, NPS below 0 shows the likelihood of customers warning others to stay away from you. The NPS will vary from industry to industry but a score of between 31 and 50 is generally a good NPS, anything above 75 is excellent.
The Project
I began the project by getting the data from the source and loading it to Power Query for transformation. I cleaned the data by removing duplicates, changing data types and handling missing data. I added the necessary conditional columns that would help with the computation of the key metrics. Once I was satisfied that the data was clean, I loaded it into Power BI where I created relationships in the modeling view.
In the reports view, I created the necessary measures using DAX before embarking on visualizing the data.
The Findings
From the data, the net promoter score is 31 which is considered relatively good. The total respondents were 120,819 with 37.21% being promoters and 6.28% being detractors.
The NPS has been on an upward trend over the past four years.
When looking at the total respondents per category, all customers were passive about communication, innovation and responsiveness of the company. This suggests that the customers are okay with the company’s services in this regard but they will easily shift their loyalty to competitors who offer them a better option.
The customers who scored as promoters were enthusiastic about timeliness, overall satisfaction, quality industry expertise and the value the company offers.
The detractors on the other hand were dissatisfied about value, timeliness, industry expertise, overall satisfaction and quality. However, the %promoters was more than the %detractors leading to a higher NPS.
The Analysis
Calculating the Net Promoter score is just the first step. Delving into the open-ended qualitative feedback to understand how to improve your score is next.
From the findings, the business units that are likely to have the most detractors are Public, Scrutiny and Technology Solutions.
The likelihood of customers being detractors increases by 1.51 when the business unit is public, by 1.38 when the business unit is Scrutiny and by 1.37 when the business unit is technology.
The business unit with the least NPS was the Public unit at 23.54 with value being the least scored at 24.51. For Scrutiny and Technology solutions, value was also the least scored at 35.43 and 40.28 respectively.
Although the NPS of the business units is above 0 which is good in absolute terms, the company should look into the 3 business units whose customers are likely to be detractors and improve on 5 areas: Value, Timeliness, Industry Expertise, Overall Satisfaction and Quality which makes their customers the most dissatisfied. The company should set a customer experience baseline using the NPS score.
PS: The data was limited otherwise there’s so much to dig into in the analysis.
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