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Advantages & Disadvantages of NPS

Know about Net Promoter Score and its Advantages & Disadvantages<br>

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Advantages & Disadvantages of NPS

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  1. Advantages & Disadvantages of NPS® Learning with Zonka Feedback www.zonkafeedback.com

  2. WHAT IS NPS®? NPS® stands for Net Promoter Score or Net Promoter System; all it implies is a single question that provides an incredible amount of feedback to a company. The magic question is “How likely is it that you would recommend our company/product/service to a friend or colleague?” When doing a survey, this question is answered on a 0-10 scale. With this information, you can see which customers are going to be committed to your brand, and those who you need to work with more. www.zonkafeedback.com

  3. Detractors They scored you 0-6 Unsatisfied Customer Not recommend your brand/business Understanding Net Promoter Score Passives They scored you 7-8 Passively Satisfied Neither disloyal nor too much loyal Promoters They scored you 9-10 Highly satisfied Loyal to your brand www.zonkafeedback.com

  4. Calculating NPS® NET PROMOTER SCORE = % PROMOTERS - %DETRACTORS where Detractors are those rated you 0-6 and Promoters are those rated you 9-10 www.zonkafeedback.com

  5. Advantages of using Net Promoter Score Credibility: NPS® is a leading industry- recognized metric, so any business manager using it can be confident of its credibility. Easy to Implement: It is easy to implement and interpret, with results from day one. It is a simple out-of-the-box package that requires no experts to set up or analyze. Easy-t0-read: NPS® is an easy-t0-read and understand metric. Correlate to Revenue: Research has shown that NPS® correlates strongly with a company’s revenue, so implementing this system in a business can motivate employees to strive for better customer service. Benchmarking:NPS® can help companies identify their position in the competitive landscape and established players can use their high NPS to set a benchmark in the industry. www.zonkafeedback.com

  6. Drawbacks of using Net Promoter Score Loyalty is hard to Quantify: It is indeed difficult to quantify a customer’s loyalty, which is what the NPS attempts. Statistical Validity:The statistical assumption of classifying a customer as “detractor” if he gives a score of 6 or less, and a “promoter” if he gives a score of 9 or 10 has been challenged. No Guarantees: The question asks the customers their “likelihood” to recommend the brand or service, and business managers must be mindful of this word. In no way does it guarantee that a customer giving a score of 10 will most certainly go ahead and 'promote' the business. No guarantees: There is still dissent over the efficiency of NPS across industries. What is regarded as a good NPS in one industry may not serve as a good measure of customer loyalty in another industry. www.zonkafeedback.com

  7. 3 Things to Keep in Mind While Adopting NPS® for Your Business NPS® is only an indicative measure of a customer’s loyalty, not their overall satisfaction with the company’s product or service. The NPS® by itself would mean nothing if not implemented with an ambition to increase it over time. This would require dedicated commitment from the company’s management to make the company more customer-centric. It is imperative to close the feedback loop. If you take a customer's feedback, it is important to act on it and communicate with the customer. Implementing Net Promoter System must be hand-in-hand with the implementation of a system that enables businesses to capture Voice of Customer and Take Actions. www.zonkafeedback.com

  8. Final Thoughts By taking the decision to implementing an NPS® program, a business has taken the decision to improve its customer’s loyalty and increase customer retention, along with a new source of advertising. But it is important to go through with the decision in a well planned system that ensures that the program is a complete success. www.zonkafeedback.com

  9. START MEASURING NET PROMOTER SCORE SIGN UP NOW Try for Free for 15 days. No credit card required Set up in less than 15 minutes Choose from Expert NPS Survey Templates Measure Net Promoter Score with NPS Survey Software www.zonkafeedback.com

  10. CONTACT US www.zonkafeedback.com hello@zonkafeedback.com +91-9999849771, +1 646 846-6000, +44 2033 896000 START MEASURING NET PROMOTER SCORE www.zonkafeedback.com

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