NPS: simple but clever

Lumoa uses NPS (Net Promoter Score)* as the preferred method for measuring customer experience. We in the Lumoa team have years of experience in collecting and using NPS feedback in big corporations and we know that it can be a super powerful tool when implemented properly.

The key benefit of measuring your customer experience using Net Promoter System is that you don’t only get the score but also the free text feedback. NPS methodology always includes two questions: the quantitative one to provide the score and the qualitative one to provide insights and understanding of drivers.

The first question always asks the likelihood to recommend: “On a scale from 0 to 10, how likely is it that you would recommend product A / company B / service C to a friend or colleague?” This question provides you with the Net Promoter Score calculated as share of promoters (people giving 9 or 10) minus the share of detractors (people giving 0–6). This number is valuable, as it enables you to set targets, follow progress over time and see whether you are moving towards the right direction.

While NPS as a number is important, I would still claim that there is too much focus on it in many companies. The second question, the why-question, should be seen as even more important as it is needed to understand what is behind satisfaction or dissatisfaction. The second question simply asks “why did you give that score?” and it is an extremely good way of finding out what really drives NPS.

With proper sentiment analysis, text feedback categorization and impact analysis you should be able to understand what the key NPS drivers are and focus only on what matters.

This blog post was originally published in Lumoa blog.

*) Net Promoter, Net Promoter System and Net Promoter Score are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.