NPS - Definition What is Net Promoter Score (NPS)? NPS is a management tool that can be used to measure customer loyalty. It is a powerful management philosophy: both a loyalty metric and a discipline for using customer feedback to fuel processes improvement in our business. The Net Promoter Score, is a straightforward metric that helps companies and every employee understand and be accountable for how they engage with customers.The Net Promoter Score
NPS - Benefits Why NPS? Simplicity: it typically requires just two or three questions, keeping the burden on the customer low. Moreover, the key "likelihood to recommend" question is scored on a simple zero-to-ten scale. Easy to Use: a company can conduct its NPS surveys by phone, e-mail or Web; and in our case, ARCHIBUS. Management can see the results of their performance in a timely fashion.
NPS - Benefits Why NPS? – Continued Quick Follow-up: practitioners typically share customer feedback very soon after it has been received. They quickly ask managers or frontline employees to contact every customer who gives an unfavourable score (a detractor), to identify the customers concerns, and to fix the problem whenever possible. Adaptability: it is an open-source method. It can be used to measure employee recruitment/retention rates and workplace experience.
NPS – Score Rating Measuring your NPS Score Net Promoter Score is based on the fundamental perspective that every company's customers can be divided into three categories: 1.Promoters (score 9-10): are loyal enthusiasts who keep buying from a company and urge their friends to do the same, 2.Passives (score 7-8): are satisfied but unenthusiastic customers who can be easily wooed by the competition, and 3.Detractors (score 1-6): are unhappy customers trapped in a bad relationship.
NPS – Score Rating Measuring your NPS Score - Continued To calculate your companys NPS, take the percentage of customers who are Promoters and subtract the percentage who are Detractors. -= NPS
NPS – Score Rating Measuring your NPS Score - Continued These are the three questions we will ask our On-demand work requesters: 1. Based on your most recent experience, how would you rate the service provided? 12345678910 2. How can we improve our service score? 3. General Comments
NPS – Actions to be taken What should we do after receiving the score? The area manager should contact the customer to gather more information regarding the issue, –Determine the root cause of the issue by using the 5 Whys and/or Fishbone tools, and –Close the loop. The primary goal is to solve the customers issue. This action could help identify and address more systemic issues. These actions can lead to improving our services, policies, procedures, SLA, etc. It would be beneficial to have a live report that compiles the results as soon as FMD received the feedback from our customers. This report will be viewed by the leaders to take the actions mentioned above. The results (comments) of the survey must be shared with all employees involved in the services provided. This feedback will be used to change employees behaviour towards our customers and improve services provided.
NPS – Where we would like to be Where we areand where we want to get to