ChatPandas | Net Promoter Score - ChatPandas

Improving Your Net Promoter Score Benchmark!

Discover how your customers think about your services via the NPS benchmark and plan accordingly.

How NPS Drives Customer Experience and Loyalty

Despite having several different branding and advertising rules, businesses heavily rely on customer opinions to derive more sales. It’s a fact that we, being a human, share our opinion whether good or bad, positive or negative. These opinions build other people’s perceptions and if the words are not in favor of a business, soon it will see a decline in sales graph. 

If you’ve to buy a new headgear, you’ll turn to a friend who you saw using one a couple of days ago or a family member expert in technology. And if they recommend product A over product B, you’ll at least consider it just because they mentioned the name. Reading reviews or taking opinions is a common practice of how we make buying decisions despite the fact how advanced our lifestyle is. And this opinion sharing doesn’t just stop here, a single opinion becomes the story that one of your listeners would tell to their peers resulting in a fusion reaction of reviews about a business. And businesses that fail to understand their consumer’s true sentiments about a product or a service tend to bear losses in terms of the lowest sales graph and poor customer experience. 

So businesses use the net promoter score as a benchmark to understand what exactly their consumers feel about the product or service quality. NPS benchmark serves as a loyalty scale ranging from 0-10 where people can easily answer questions after the live chat is ended.

Net Promoter Score, What & How

Now, let’s look at what exactly is this NPS benchmark that companies are using to measure customer experience & loyalty. NPS or the Net Promoter Score is a metric that businesses use to understand how satisfied or unsatisfied a customer is with their product or service. In the live chat support, we incorporate a feedback questionnaire with a 0-10 scale asking the visitor how likely or unlikely he’s to refer your services to others. This practice helps businesses in understanding the ratio between promoters and detractors and take appropriate measures to find the issues.

How NPS Works

If you’re confusing NPS with a highly complex scientific equation, here’s how it works!

The NPS benchmark involves a scale having 0-10 numbers either to rate ‘Very Happy’ or express your resentment with ‘Not Happy At All’. This ease of implementation is what gives businesses to ask as many questions in different stages of the live chat conversations as they want. And they collect data about customers’ true impressions of the product or service and make accurate assumptions about how to maintain a high customer experience score. Usually, the NPS would involve a few groups that are detailed below: 

Promoters: This group usually rates between 9 or 10 on the NPS scale and holds very favorable views about the company’s products or services. 

Passives: Passives are those who usually have a neutral perception about the company meaning they neither completely like the product/service nor do they find it of low quality. They usually rate between 7 or 8 on the scale. 

Detractors: This group is the one that can damage your reputation amongst your potential customers as they have a very unfavorable opinion about your services. Detractors usually rate between 0 to 6 on the NPS scale. 

Now, to calculate the exact NPS, you’ll have to subtract the passives & detractors from the total responses received. Suppose, you asked for your customer’s reviews against a new product and you got 100 responses in total. In these 100 responses, 60 rated the product with 9 or above, 10 chose 7, and 30 chose below 6. If you exclude these 40 neutral and negative responses from the pool, your NPS score would be 60 suggesting that you need to focus on these customers for retargeting your marketing efforts.

How to Understand NPS

Until now, we learned how to calculate the NPS but what score is acceptable is another question that companies should be thinking about. Below are some NPS statistics from the known brands:

  • Facebook: 27
  • Audi: 37
  • Vodafone: 7
  • Starbucks: 77

If we measure the NPS score by numbers, Starbucks leads the list but that’s not the entire truth. Vodafone does have the lowest score of 7 but if you dig a little deeper, you’ll discover that there’s a 44% Promoters rate. On contrary to that, Starbucks has a 20% detractor ratio despite having the highest NPS on the list which suggests customers would still switch to other coffee brands. That’s the learning lesson you must keep in mind while using NPS as a benchmark to improve your live chat support structure.

Net Promoter Score Benefits

Although, NPS is one of the many benchmarks that companies use but we believe implementing the net promoter score benchmark in your live chat can offer you various avenues of growth such as: 

Referral Generation

One of the many benefits that you can expect from NPS implementation into your live chats is it creates a referral system amongst your existing and prospective customers. Since one of your customers expressed satisfaction over your products/services, they’re more likely to share their views with friends or family. And this is where you earn a new customer, get more business and incferase your revenue margins all because of having a higher NPS benchmark.

Customer Loyalty

If you discover how to effectively make use of the net promoter score benchmark, you’ll get to craft a better customer retention strategy. Since you know what percentage of your customers are unhappy and assess the reason for their discomfort, there’s an opportunity to fix it up. With the help of NPS-based surveys at different stages of live chat interactions, you can surely keep existing customers happy along with generating new prospective buyers. 

 

If utilized correctly, the net promoter score benchmark can offer you various opportunities to fix the problems in your existing business module, offer better products/services, and generate more profits each month.

Meaningful. Personal. Human.

Your best moments in Customer Experience are here.