A completed guide for measuring customer satisfaction by NPS (Net Promoter Score)

Customer Satisfaction is one of major metrics that every product needs to be measured in order to have insight and feedback about what works and what wasn't and also open the door for optimization.

The components of Net Promotion Score

The basic structure of how to measure NPS

How are we calculate NPS

Definition of Detractors, Passives, Promoters

NPS calculation

Step by step to calculate NPS
Step 1: Be clear about your goals:

• Whatever the result might be, feedback from customers is invaluable
• Choosing the right metrics from the beginning keep you on track

Step 2: Choosing the right respondents to your survey:

• Choosing the right customer is a fundamental step to get quality feedback and reliable data
• Right customer give constructive feedbacks and show the marketers a blind spots

Step 3: Design a good questionnaires

• Don't get a too long survey
• Ask a further question to separate customer
• Having a cross-validation question is a great way to eliminate conflict responses
• Consider including a survey incentive

Step 4: Survey Distribution

• Calculate forehand how many responses needed to avoid bias
• Choosing the right channel based on the conversion rate to ensure the quantity needed.

Step 5: Good data bring great insight

• Collect reliable data
• Bring insight with possible action to improve. Avoid focusing on insight which can not be affected

Step 6: Buiding feedback and improvement system

• NPS shall be measured quarterly basic on the same customer group to see the progress that we have changed or improved in the last quarter.
• Building a guideline for improvement for each NPS to avoid asking customers the problem that we haven’t fix yet

Above is a simple guideline to implement NPS within an organization. By building appropriated NPS measurement processes and prompt action on the weak point will help the company growing substantially without losing customers.

Remember, the cost of acquiring a new customer is much more expensive than the cost of retaining an existing customer. At the end of the day, revenue and cash flow help your company survive in every situation.

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