The nps index in the banking sector. Brand awareness. How NPS is calculated

Most companies are overly focused on growing customers and growing profits. However, it is very important to understand the fact that it is like fishing with a holey net. It seems that you managed to "catch" a lot of fish, but as a result you are left with nothing.

Customer retention is not the goal, but consumer loyalty to the company is. The problem is that this indicator is very difficult to measure, as it is not quantitative. Fortunately, there is a blueprint to help you meet customer needs and build long-term, rewarding relationships with them. In addition, you will be able to predict their loyalty to your brand.

This article will focus on the basic concepts associated with such an indicator as the consumer loyalty index (NPS, Net Promoter Score). You'll learn how a simple one-question survey can help you measure your customer satisfaction. You will learn how to start using and further apply this indicator in your marketing campaigns.

Loyalty measurement methodology

The founder of the NPS measurement methodology is Frederik Reicheld. His research was published in the Harvard Business Review in an article titled "One Number You need to Grow." In it, Reicheld criticized traditional customer satisfaction surveys. He said that all of them do not allow "to keep abreast" and assess how happy the buyers are.

As a result, Reicheld and his colleagues developed a simplified schema that linked consumer responses and behavior.

At the heart of measuring the consumer loyalty index is the belief that loyalty is nothing more than a person’s willingness to contact a company again and, more importantly, recommend a product or company to their friends. This indicator is determined very simply. We will talk about this now.

How to conduct a survey

So, NPS is an index that measures the desire of a consumer to recommend your company's products or services to their friends. To calculate it, you need to ask customers two questions:

On a scale of 1 to 10, how likely are you to recommend a product (service) of our company to your friends or colleagues?
What exactly influenced your answer?

Next, you need to create a survey and send it to your customers. Typically, these questionnaires are sent to e-mail, via SMS, offer in the form or ask by phone. Ideally, the survey should be completed in less than 24 hours.

Once your clients have answered both questions, you will need to divide them into the following categories based on their rating:

9-10: Brand Adherents (Promoters). They value your company's products and tend to recommend them to their friends and associates. They also often make repeat purchases. These customers are the most valuable.
7-8: Neutral consumers (Passives). They don't spread negative reviews about your company, but if someone makes them more profitable proposition- refuse your services. Such customers do not often recommend you to their friends.
0-6: Detractors. They are dissatisfied with the quality of your company's products or services and want to ruin your reputation by spreading negative reviews.

How to calculate NPS?

Based on the audience segmentation data (see previous section), the consumer loyalty index can be calculated using a simple formula:

NPS = (% Brand Adherents) - (% Critics)

The value you get will be between -100 and 100. If the consumer loyalty index is 100, this means that absolutely all of your customers are fans of your brand ( best case scenario). If this indicator is equal to -100, then on the contrary, all your customers criticize you (worst case scenario).

Why is it worth tracking the consumer loyalty index?

Periodic tracking of the consumer loyalty index is necessary, since this indicator:

easy to understand - this system very easy to understand and adapt to your company;
easy to calculate - the survey is very short, and your customers will be able to quickly and easily answer the proposed questions;
gives feedback of practical value;
helps identify target segment audience (if you combine the information received with);
will allow you to develop a plan to improve products or services;
will help build a "customer cult" in your company - each department will be aimed at building long and fruitful relationships with customers;
Gives you a competitive advantage - insights from NPS analysis will allow you to make decisions quickly, while your competitors will have to spend several months on it;
is available for any business - conducting such surveys will not greatly affect the budget, and you will be able to "keep your finger on the pulse" of consumer sentiment.

Using the NPS Score to Grow Your Company

1. Sustainable growth and customer retention

Extensive research has shown that NPS is one of the top indicators of growth. If it is higher than that of competitors, this means that your company has a larger market share.
According to a Gartner study, 65% of start-up companies already have a ready-made customer base. Attracting new customers costs 5 times more than retaining old ones. The Customer Loyalty Score is an affordable way to measure customer satisfaction and retention.
NPS can be used as a development metric to turn a company's current growth into sustainable growth.

2. Sales management

The consumer satisfaction index can be used to make decisions about the company's product itself.
NPS allows you to properly prioritize based on . They can get feedback very quickly and make changes to the marketing process.

3. Marketing

Verizon research has shown that 85% of new customers come to small companies thanks to. Keeping your NPS high will help you reach more customers without spending money on advertising and marketing campaigns.
The Consumer Loyalty Index helps marketers measure the mood and opinions of customers, and then give feedback to all team members. Thus, all departments of the company will be able to work more harmoniously in order to achieve one common goal - customer satisfaction.
NPS, combined with analytics tools, can help you predict consumer behavior and create so-called behavioral patterns.

4. Employee potential management

A customer loyalty score can help you determine the satisfaction level of your employees. This is especially important for companies operating in the service sector.
NPS can also be used to select a new vector corporate culture. In addition, with the help of this indicator, you can find out the opinion of your employees about the new corporate policy.

5. General KPIs and reporting

You can use NPS as the only customer satisfaction metric. To do this, the indicator must be measured on an ongoing basis and quarterly reports should be made. This will help you get meaningful insights and build a long-term plan for the development of the company.
If you link NPS with financial statements, then you can draw a conclusion about the general state of development of the company. For example, if profits are growing and NPS is declining, then this is an alarming sign regarding the long-term development prospects.

6. Benefits of the consumer loyalty index

Increasing profits per customer: Brand loyalists tend to spend more on the company's products and services than the average customer.
Reducing ongoing costs: Brand adherents are tolerant and tolerant of problems that arise in the company, so they are less likely to complain. This helps to reduce maintenance costs. In addition, loyal customers decrease as they spread positive feedback.
Churn reduction: By reducing the number of neutral customers and critics, you can reduce customer churn.
Motivation for employees: all departments of the company will work together to achieve a common goal.

Increasing customer lifecycle value

Only 14% of customers stop using the company's services because they are not satisfied with the quality of service or the product itself. 69% of consumers stop using a company because they feel like they've been forgotten.

Most dissatisfied customers will never come to complain directly. They will just leave silently and then start leaving negative reviews online. That’s why it’s so important to keep “connected” with your customers all the time.

Continuous measurement of NPS will allow you to identify those customers who:

are going to refuse the services of the company;
ready to act as “advocates” of the brand;
see any shortcomings in your product or services, but do not talk about them.

With this valuable information, you can prevent.

When to conduct a survey?

Often, the effectiveness of an NPS campaign is not about how you ask questions, but when you ask them. Here are a few "right things":

1. After potential client took advantage of the free test period (Post Free Trial). If the trial period has expired and the customer does not want to purchase the paid version, then this is an indication that he is interested, but not yet sufficiently involved in the purchase process. Why not ask him to give you feedback to find out what went wrong.

2. Before the client finally refuses the services of the company (Exit Survey). The price is a repulsive factor for a person only when he does not see the value of the product. If a client decides to break off their relationship with a company after having already used their services for a while, this means that you are doing something wrong. Instead of just letting him go, you can re-engage him by asking him to take a survey. Even if that client leaves anyway, you can learn valuable insights.

Criteria for evaluating the consumer loyalty index

You can't draw objective conclusions just by looking at your customer loyalty score. It is necessary to take into account the position of the company in the chosen business area. For example, the NPS of a large store may be 30, but it will still be the worst in the market. At the same time, the telecommunications company's NPS will be 32, and it will be the leader among competitors.

What factors influence the NPS evaluation criteria? How do you know if your customer loyalty score is good? First of all, there are three factors that affect the criteria for evaluating the consumer loyalty index:

1. Level of competition

If you are in a highly competitive industry such as insurance, banking, or medical service, then the average NPS indicator will be considered normal. But if your company only covers a small segment of the market (such as electric cars or wireless headphones), then you need to make sure that your NPS is high enough. This will be an indicator that your offer is unique and that your customers perceive your brand positively.

Optimal NPS for different areas businesses: banking (0), auto insurance (22), health and life insurance (27), airlines (36), tourism (38), hotels (43), online shopping (45), online services (48).

2. Tolerance

Customer tolerance is another key factor, which defines the NPS evaluation criteria. This is due to the fact that people are peremptory about how good the product or service they use regularly is.

To visualize how this factor affects NPS, you need to give an example. Verizon's Consumer Loyalty Index is 38, which may seem like a very average value, but this company occupies one of the leading positions in the market. By comparison, their competitors (AT&T and MediaCom) have scores of 15 and 22. This low score is not due to the company's lack of quality service. This means that these firms operate in a highly competitive environment where customers are absolutely unwilling to tolerate even minor "errors" in the quality of service.

3. Obstacles

Usually, a person cannot afford to improve ("upgrade") the purchased product or start using the services of another company without certain financial losses. Thus, in order to appear consistent in their decisions, the client prefers to remain committed to the same brand.

SaaS companies face this problem all the time. To become a client of one of these firms, you need to deposit a certain amount, so it is very difficult for a business to retain its customers and maintain their loyalty. In this regard, the NPS indicator of SaaS companies is kept at “below average” levels.

What is considered a good indicator of NPS?

So, there is no quantitative indicator that can be called good, since this value varies depending on what kind of business you are in. But there are a few questions that you can ask yourself to understand how high your consumer loyalty index is:

Is my NPS higher than my direct competitors? If yes, then this is a good indicator. However, this is not enough to consider your business successful.
Is my NPS going up? If after 3-6 months the consumer loyalty index has grown, then this is a good indicator.
Is my NPS above zero? If your NPS is -50, which is higher than your competitors, then don't jump to conclusions. Such a low NPS is a sign that your customers are not satisfied.

It must be remembered that the consumer loyalty index should not be taken literally. Most companies are simply obsessed with growth rates and do everything possible and impossible to make performance indicators grow. NPS is not a quantitative metric. It is rather a qualitative indicator that gives you food for thought.

In general, while NPS claims to be the new standard for measuring customer satisfaction and loyalty, it has been criticized for its simplicity. Some experts say that the index does not give an accurate picture of how happy a company's customers are. For example, they highlight the fact that companies with the same NPS may have different percentages of adherents, neutral consumers, and detractors. Therefore, entrepreneurs need to focus not on the indicator itself, but on what these numbers tell them.

What to do after measuring NPS

This section will summarize the goals of measuring the loyalty index, and will also close the receiving cycle feedback from clients. This inclusive strategy will give you consistent growth and keep track of customer churn.

1. Critics: Make a Personal Touch

According to a study by Lee Resources, 70% of clients are ready to use the services of the company again if an unpleasant situation is resolved in their favor. Your goal here is to show your customers that you care.

Most companies believe that the category of customers called "critics" is impossible to convince. However, this is not at all the case. In fact, those customers who want to end their relationship with the company and spread negative reviews are the future adherents of your brand. They just want you to pay attention to them and solve their problem.

Perhaps emails with questions about possible problems and ways to solve them will help you regain lost customers, for example:

What would you like to do with our product but can't?
Could you formulate an ideal solution to your problem that would completely satisfy you?
If you had a magic wand, what changes would you make to the product?

Once you receive feedback, you can take the following actions to keep your customers:

provide them with instructions (if your product has the desired function);
extend the trial period and give access to premium features;
offer any third-party service that would help solve their problem.

By offering solutions to problems, you can turn critics into brand followers.

2. Passive Consumers: Engage Before They Leave

Passive customers are a very interesting category of customers: they don't love your product, but they don't hate it either. It seems that they are just waiting for something good or bad to happen in order to make a specific decision.

However, passive consumers are not inclined to answer open-ended questions and give business owners feedback. For example, Zendesk found that only 37% of this customer category responded to a survey. While 50% of critics and 55% of the company's supporters share their opinion about the company's services with pleasure.

It seems like passive consumers can't ruin your brand's reputation. But they, like critics, are more likely to refuse your services. Here are the steps you can take to keep these customers:

By offering discounts or upgrades, you can re-engage passive consumers in the buying cycle.
Send them introductory user guides: they may not be involved in the purchase process due to an unfavorable first impression, as a result of which they never return to the site. You can periodically send them various brochures that tell them about the latest releases or new features of your product.

3. Brand Adherents: Show Your Appreciation

Brand loyalists are, without a doubt, ideal clients for any company. But most firms take them for granted in vain. They make no attempt to reward or thank those clients who bring them the most income.

Undoubtedly, gratitude will help strengthen your relationship with this category of buyers, and will also contribute to the development of the company.
Here is what you can do for this:

According to statistics, the average share of people responding to an NPS survey is 60%. Thus, each company will have at least 40% of those customers who did not answer the questionnaire. Surprisingly, according to several studies, this category of customers is more likely than others to refuse the services of your company in the future.

In fact, you're more likely to re-engage a critic than you are to convince a customer who didn't take the survey. If no action is taken, then usually 40-70% of these people stop contacting the company within the next 6 months.

The only way to interest them is the methods described above. The same tactics are suitable for them as for critics and indifferent consumers.

Conclusion

Gathering information about how customers feel about your brand is an integral part of a long-term growth perspective. Of course, the consumer loyalty index has its drawbacks, but they can be overcome through the active implementation of effective metrics.

The resource NPSBenchmarks.com - a repository of data on indices of global companies Net Promoter Score (consumer loyalty index) - published information on best practices in the field of service. According to the results of calculations, high NPS values in industries: technology - 61%, consumer goods- 46%, hospitality - 52%. World retail leaders Amazon and Costco (industry leaders in the top 100 international companies by market capitalization) have NPS of 69% and 79%, respectively.

Unfortunately, in Russian practice there are no consolidated data on loyalty, and NPS as a method of assessing loyalty is far from being used everywhere. UBS Evidence Lab has published figures for Russian retailers: of the 14 largest players, five have positive values. The highest NPS was received by Lenta - 7% and Okay - 3%. In the banking sector, Sberbank's loyalty reaches 59%, in telecommunications Tele2 - 35%, Megafon - 17%, Beeline - 25% . And if more and more companies appear in the West, for which the connection between the level of service and staff motivation is obvious, then in Russia business still rarely thinks about it. In a HeadHunter survey, 96% of participants answered that HR should not be engaged in internal and external customer focus at all.

The main problem of Russian companies is still the gap between plans and deeds. In particular, the study, which involved 419 Russian companies from 39 regions of Russia, revealed a dissonance between real business processes and declared values. Another contradiction, according to a study in which 313 Russian companies took part, was the fact that managers willingly declare the primacy of the client's interests, but do not take any action to assess their satisfaction. A common problem for companies in low-competitive markets is that the first ones to enter set records for profits and growth rates, assuming business building is the secret to success. As a result, an extremely small number of players pay serious attention to service and the struggle for customers. Why do something if everything is fine anyway? And this is the main trap for owners. No one thinks that the reason for success is simply the lack of competition.

In the West, in a saturated market, more and more companies are building their strategy on customer service. If we compare the dynamics of consumer opinion and company value, the connection is obvious. Thus, the capitalization of Amazon in 2000 amounted to $16.62 billion, in 2010 - $58.76 billion, in 2016 - $422.83 billion. Thus, an increase of more than 25 times with an NPS of 69%. At the same time, Walmart, which became famous for a large number of negative reviews from buyers, dropped from $239.44 billion in 2000 to $222.02 billion in 2016. The most successful example is Apple, whose market value exceeds the total capitalization of public Russian companies. The company was the first to elevate customer experience to the rank corporate strategy. Building a sales system at Apple, top management removed revenue from sellers' KPIs, leaving them with NPS indicators and time spent on customer service. Steve Jobs believed that if you start working at the level of emotions, turning every stage of interaction into pleasure for both customers and employees, they will repay with their loyalty. As a result, Apple's customer satisfaction reached 89%, profit per employee exceeded $110,000, and revenue was $500,000 for the year.

The focus on service is the prerogative of not only companies focused on the above-average segment. An example of this is the American low-cost carrier Costco, the world's largest chain of club-type self-service stores. Annual membership in the Costco club system in the US and Canada costs from $55 to $110, in Spain from €25 to €30, and in the UK £20. Costco stores have hearing aid sales centers, opticians, gas stations, and many other related services. At the entrance to the hypermarket there are greeters, whose task is to greet the guest. Capitalization of Costco in 2000 was $18.03 billion; in 2010 - $25.7 billion, in 2016 - $73.91 billion. The value of the company has quadrupled with an NPS of 79%, and profit is $2.35 billion.

Few in Russia have yet realized that loyalty is as important as EBITDA. Some major players are making efforts to change the structure towards a customer-centric approach. Aeroflot's NPS, which has seriously changed the approach to service since the arrival of Vitaly Savelyev, has grown from 44% in 2010 to 72% in 2017. In 2016, the company's capitalization for the first time reached a maximum of 116 billion rubles. Alas, this is more the exception than the rule. For many, the NPS remains a formal indicator: the NPS of the Pobeda airline, which only the lazy did not scold, was 72% against 67% of Aeroflot in 2015.

At the same time, young Russian companies find interesting solutions, using the service as the main thing competitive advantage. Oleg Tinkov returned to the Forbes rating this year, in particular due to the fact that he approached the creation of the Tinkoff Bank service in a completely new way, which took second place in the popular vote of banki.ru. There are no queues in the bank, all documents are delivered to customers by "representatives". The office space is an open open-space, and the atmosphere resembles a democratic IT company rather than a strict bank. Clients receive prompt service and a user-friendly interface, and Tinkov receives a highly motivated and dedicated team.

It should be obvious to business that external loyalty never comes before internal. The return of employees also depends on it, because labor productivity is the main point of growth. The revenue per employee of the Western low-cost airline Costco exceeds $610,000 per year. For comparison: a good result in Russia in retail hardly exceeds $100,000. It is worth looking for a solution in working with the motivation and involvement of employees. In 2014, economists at the University of Warwick proved that employee productivity increases by 12% or more when they are happy.

In the Russian HR management system, this issue is practically not given attention, however, market experience shows that the mood of the team is directly proportional to labor productivity. A few years ago, at Uyuterra, we fundamentally changed the way we manage our field employees, transforming the manager from a "boss" into a leader and mentor. We launched large motivational programs based on gamification (the use of games in training and staff rallying). Made a bet on non-material motivation, included the mood of employees in the list of KPI managers, began to cultivate a feat for the sake of the client. As a result, productivity growth more than doubled in two years. Last year, we launched a similar project with the Far Eastern hypermarket chain Samberi, collecting more than 2,000 examples of outstanding service in a few months, when employees did more for the client than required by the standards. At the end of the year, more than 60% reached NPS, which is almost impossible for hypermarkets. Now the company is approaching revenue of 50 billion rubles.

Knowing how satisfied and loyal your customers are is important for any company, because satisfied and consistently using customers are the source of future revenue and profit growth.

The problem is that most consumer research is complex, expensive, and difficult to interpret. That is why the net promoter score (NPS) was developed - "the only number you need to know" - based on answers to a single question: "What is the probability that you will recommend (company A, or product B, or service C ) to your friend or colleague?

The key question this metric helps answer is how satisfied and loyal are our customers?

The ideology of the customer loyalty indicator is based on the assumption that all customers of the company can be classified into one of three groups:

loyal customers;
passive clients;
disloyal customers.

This approach allows organizations to keep track of these groups and get feedback on their performance from customers. Moreover, studies have shown that there is a strong correlation between grouping customers and their actual consumer behavior - repeat purchases and recommendations to other customers.

Further research has shown the relationship of high NPS values with the growth rate of companies when compared with competitors. In most industries, this one simple metric explains most of the variance in relative growth rates, i.e. companies with a better ratio of loyal to disloyal customers grow faster than their competitors.

Developed (and trademarked) by Fred Reicheld, Bain & Company and Satmetrix, NPS measures how companies and their employees treat their customers. Application this indicator Together with appropriate diagnostics and resulting actions, it improves customer loyalty and ensures profit growth.

How to take measurements

Information collection method

Data collection is carried out using questionnaires (by mail, telephone or Internet). There are two methods of collecting information to calculate the customer loyalty score.

top-down method. The survey is conducted anonymously among the company's customers. Each client is asked two questions. In the first one, it is proposed to evaluate the relationship "client-company", in the second - to give a similar assessment to competitors. The result is an easy and direct comparison between your customers and your competitors' performance.
Measurement of NFS during the most important transactions with clients. This approach provides feedback on operational efficiency.

Formula

Using a scale from 0 to 10, organizations can calculate NPS as the difference between the percentage of loyal and disloyal customers.

Loyal customers (on a scale of 9 to 10) are active customers who buy the company's products and recommend you to others.
Passive (on a scale of 7 to 8) are satisfied but inactive customers who are willing to consider competitors' product offerings.
Disloyal (on a scale from 0 to 6) are dissatisfied customers who, with their negative statements, can harm your brand and hinder the growth of the company.

To calculate NPS, from the percentage of loyal customers (who scored 9-10), the percentage of disloyal customers (who scored 0-6) is subtracted.

Most companies don't conduct surveys very often. Instead of an annual mass multi-page customer survey, companies can use the suggested single-question approach with greater frequency. It is recommended to conduct surveys constantly among a part of your customers or at least once a month (selecting 10% of all customers). In this case, you can follow the trend and avoid wrong predictions and conclusions.

The source of information is customer surveys.

The ease of obtaining the indicator makes it more cost effective than traditional customer satisfaction surveys. However, even in this case, the costs can be significant. The costs are especially high when conducting surveys on paper or by mail. Automation of information collection reduces costs.

Below is information (provided by Satmetrix) on the leading companies in terms of customer loyalty.

Customer loyalty index in US and UK companies in 2011

Top Companies in the US in 2011		Leading companies in the UK in 2011
Company	NPS, %	Company	NPS, %
USSA - banking services	87		67
Trader Joe's - grocery store	82	First Direct - banking services	61
Wegmans - grocery store	78	LG - TVs	39
Costco - warehouse and retail trade enterprise	77	Samsung - TVs	35
Apple - computer hardware	72	Sony - computer hardware	30

Example. Let's consider a company that conducted a survey of 1,000 of its customers. To the question "What is the probability that you would recommend this company's products to your friend?" could be answered using a scale from 0 to 10, where 0 means "definitely would not recommend", 5 - "probably recommend", 10 - "definitely recommend". Below are the survey results:

Customer Loyalty Score = Percentage of Loyal Customers – Percentage of Disloyal Customers.

Percentage of loyal customers = [(300+400) / 1000] × 100% = 70%

Percentage of disloyal customers = [(1 + 2 + 0 + 0 + 2 + 5 + 10) / 1000] × 100% = 2%

Customer Loyalty Rate = 70% - 2% = 68%.

Remarks

NPS will give a simple and understandable number, but it does not indicate the reasons why customers recommended or would not recommend you, or your products, or your services. A powerful support for single-question research is a set of open questions about the following content.

What do you particularly like about this company or product?
What or what areas could be improved?

In this case, companies will get an idea not only about the number of loyal and disloyal customers, but also about areas that need improvement. Let's take the Canadian online store Zappos as an example. The survey to determine the customer loyalty indicator is carried out here twice: after the order is made and after the customer's conversation with the store's customer service representative.

The question in the Zappos online questionnaire is as follows (answerable on a scale of 0 to 10): “How likely is it that you would recommend Zappos to a friend or relative?”

To obtain information that would help the store increase the number of loyal customers at the expense of passive and disloyal, another question is also asked: “What is the most important area we need to improve?”.

Moreover, after the client makes contact with a customer service representative, he is asked the question: "If you were the owner of the company, what is the probability that you would hire this person?" And the next two questions: “Generally speaking, how would you rate the level of service provided by (followed by the name of the store’s customer service representative): good, bad, great?” and “What specifically did you like and dislike about the service?”

It should be noted that some experts believe that the methodology of the customer loyalty indicator is statistically insignificant, since the answers are distributed into only three groups. It is possible that the presented methodology somewhat simplifies the calculation, so companies can rely on the actual distribution of answers on a ten-point scale and track its change over time.

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 it a profitable investment and agreed with pleasure.

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 is despite the fact that the advertising market is now falling anyway, and they would cling to every 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.

Collecting 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:

You must 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 a technical task for a designer, design it 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 - commit the 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 speed Sveta.

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 timely measures taken, they were able not only to restore NPS level, but also 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.

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

Index NPS loyalty, from English Net Promoter Score can be translated as a net index of promoters. 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.