In today's customer-centric business world, there's a fundamental rule to follow: give your customers a voice. This isn't just a fictional gesture, it involves actively seeking their feedback and taking decisive actions based on their ideas. By using a Net Promoter Score (NPS), you can gather valuable information to make significant changes that can be provided to both current and prospective customers.
Let's elaborate on the topic to explore the basics of NPS, how to measure it, its formula, and how AI can simplify the process of calculating NPS scores. You will learn about a solution for creating and analyzing NPS scores at the end.
What is NPS?
NPS is a customer loyalty and satisfaction metric that measures the likelihood of customers recommending a product or service to others. It is based on one simple question with a scale of 0 to 10.
In other words, NPS is a simple yet powerful way to measure customer loyalty and satisfaction. It is based on a single question: "On a scale of 0 to 10, how likely are you to recommend our product or service to a friend or colleague?"
The responses are categorized into three groups:
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Promoters (9-10)
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Passives (7-8)
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Detractors (0-6)
The NPS score is calculated using a formula resulting in a score between -100 and +100. Measuring should also be done at the correct stage and with corresponding users to avoid several fallbacks.
How to Calculate NPS Score
No special math skills are needed to get your score. Here is the formula for that:
Net Promoter Score = Total % of Promoters – total % of Detractors
Subtract the percentage of customers who would not recommend your product or service from the percentage of those who would. For example, your Net Promoter Score would look like this:
70% promoters – 10% detractors = 60 is your NPS Score.
NPS for SaaS Companies
In the context of NPS scores for SaaS companies, the calculations typically provide scores ranging from -100 up to 100. However, the challenge lies in determining whether a score is considered average for the industry. The mathematical average of 0 does not convey any meaning in this case. To address this, we conducted a benchmarking analysis to provide insights into the performance of SaaS companies and ensure a grounded understanding of their NPS scores.
Source: Customergauge
Based on our analysis, if we calculate the average NPS score for SaaS companies, it typically hovers around 23. This benchmarking analysis provides valuable insights for companies to improve their performance and make informed decisions to boost customer satisfaction and loyalty.
Using AI Assistant to Conduct an NPS Survey
If you are thinking about how to launch a survey to get your NPS score, you can employ a conversational chat to make it more engaging and interactive. In addition, conducting an NPS survey with a conversational chat powered by AI can be a game-changer for businesses looking to gather valuable customer feedback.
AI-powered NPS surveys combine the power of conversations with the precision of metrics, providing a deeper understanding of customer sentiment and loyalty.
Chats can make the NPS survey feel less intrusive by personalizing conversations based on previous interactions, leading to higher response rates and more meaningful feedback. We can give you a shortcut and introduce a tool to conduct your survey.
Hoory AI as the Best NPS Survey Tool
Hoory AI stands out as an exceptional NPS survey tool, offering a user-friendly experience and easy-to-use features to design the process of collecting and analyzing customer feedback. One of the key features of Hoory AI is its NPS survey template, which simplifies the process of gathering valuable insights from customers. The template includes a series of steps to guide users through the survey process:
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Creating a Rule-Based AI Assistant: Hoory AI allows you to set up a rule-based AI assistant to automate the survey distribution process and steps to engage with customers effectively.
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Choosing the NPS Survey Template: You can easily access and deploy the NPS survey template provided by Hoory AI to gather feedback from customers efficiently. You can add more steps or edit the current ones on your preference.
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Receiving Responses via Chat: Customers can conveniently respond to the NPS survey through the chat widget, which provides real-time feedback on their experience, including the score and additional comments to explain their choice.
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Viewing and Exporting the Results: Once the survey responses are collected, users can access and view the results directly within the Hoory AI platform, gaining immediate insights into customer sentiment. In this step, it is essential to calculate the score based on the formula mentioned above.
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Checking the Analytics: Hoory AI offers simple yet powerful analytical tools to analyze the survey results, providing users with valuable data to understand the number of views and completeness of the survey.
This way, businesses can easily collect feedback, view survey results, and access analytics to make informed decisions based on customer feedback. Hoory AI simplifies the NPS survey process, enabling businesses to boost customer satisfaction and loyalty effectively.
To reiterate, it is crucial to listen to your customers' voices, not just out of courtesy but with the intention of taking actionable steps to improve customer satisfaction and loyalty. By implementing a Net Promoter Score survey, you can gather valuable insights and make data-driven decisions to improve your customer experience and drive growth.
Don't just focus on the NPS number itself. Instead, use the NPS survey as a tool to identify at-risk customers and gain valuable insights that can guide your efforts to strengthen customer relationships. Embed a customer-centric mindset across your product, making the customer experience a top priority.