How to determine that a client is ready to recommend you to others and measure this indicator

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

By using this tool, you will have a better understanding of how satisfied customers are with your product and what needs to be improved.

In 2014, an advertisement for Apple smartphones appeared on Russian television for the first time - then it was the iPhone 6 and iPhone 6 Plus. Prior to that, the company's devices were sold without traditional TV advertising. On the streets, as now, there were no ads for the iPhone. And sales were still growing - for example, in 2013, 1.57 million devices were sold in Russia, twice as many as in 2012.

The fact is that Apple chose the best ad ever - word of mouth. The company took advantage of the fact that the satisfied customer is the company's external marketer better than others.

Today we are going to share the NPS metric, which will help you measure in numbers how willing people are to be your marketers. NPS is an abbreviation for net promoter score, the term in Russian sounds like "consumer loyalty index".

How to calculate NPS

1. Suggest to your clients: “Rate how ready you are to recommend our product, where 0 is not ready, 10 is ready”.

2. Sort your responses into three categories:

   • 0-6 - dissatisfied;
   • 7–8 are neutral;
   • 9-10 - ready to recommend.
3. Use the formula: (Ready to Recommend - Dissatisfied) / Total number of survey participants.
4. Convert the number to percent and get NPS.

For example, you gave a crochet workshop and asked participants to fill out a questionnaire. Got the results:

• 0-6 - 15 people;
• 7-8 - 30 people;
• 9-10 - 50 people.

NPS = (50 - 15) / 95 = 37%.

Which NPS is considered good

Common NPS Grades:

• from –100 to 0% - bad;
• 0-50% - normal;
• 50–70% is good;
• 70-100% - excellent.

For example, the NPS of BMW cars is equal to Recalling Cars and Restoring Trust: How Well Have BMW Fared? 46%, iPhone - 72% Apple's AirPods achieve 98% customer satisfaction in new study, AirPods - 75%. In 2016, the ranking of leading companies in NPS in North America looked like this:

• USAA (bank for the US military) - 80%;
• Costco (a network of self-service warehouses) - 78%;
• Nordstrom (department store chain) - 75%;
• Apple - 70%;
• Amazon - 69%;
• Southwest (airline) - 66%

But keep in mind that the results are highly dependent on the size of the company, product and customers.

For example, school tutor Elena Semyonovna prepares eleventh grader Seryozha for the Unified State Exam in Physics. The tutor simply and easily explained to him topic by topic. As a result, Seryozha passed the exam with 75 points and entered the university. After that, of course, he will be ready to recommend Elena Semyonovna - he passed the exam, entered the university, and he does not want to offend the person. Elena Semyonovna had 20 such Seryozha people in a year, and everyone thinks something like this. Therefore, the NPS is somewhere in the region of 90-100%.

But Vadim bought an iPhone X. To make Vadim happy, Apple engineers made a screen almost in the entire front panel, plugged in a 10-nanometer processor, and introduced a face scanning system. When Vadim is asked if he is ready to recommend a phone, he replies: “Who knows. Cool, of course, but this "monobrow" on top - sucks. And iOS is not the same, it was better under Jobs. " NPS as a result - 70%.

By itself, NPS does not give as much as it seems at first glance. You can compare the NPS of your beading courses with the iPhone and be glad that the courses have more. But don't get hung up on that.

The most important thing is to regularly measure NPS and evaluate it over time. You can also compare with direct competitors.

How NPS Helps Improve Your Product

I will share my experience of using NPS. My company runs intensive courses for entrepreneurs - for two days we tell them about numbers-based business management. You can participate live and online. We have already conducted four intensives and at each we determine the NPS - at the end of the second day we give the participants a questionnaire.

The main question in the questionnaire is “Rate how much you are ready to recommend our product, where 0 is not ready, 10 is ready”. According to him, I count NPS. This question is the main one, but not the only one.

I also ask the participants to evaluate the quality of the individual components of the intensive: the speeches of the speakers, the broadcast, the organization. So I understand how NPS is formed and how to improve it.

Below are the results of the questionnaire for two intensities. Pay attention to the rating of the broadcast. When we saw 18%, we began to think together with the operators what was wrong and how to improve it. As a result, the broadcast rating went up from 18% to 50%, and the NPS - from 76% to 89%.

Why not just ask for a product rating?

NPS and simple product quality assessment have different goals. NPS is about recommendations and word of mouth. The quality of the product affects this, but not directly.

People may have complaints about the quality of the product, but they will still recommend it. Look at the intensive label again - in both measurements the quality was below the readiness to recommend. We interpret it this way: despite the jambs, it is useful for people.

Or maybe the other way around. Let's say that the grocery store at home suits you completely, but you will not tell your friends: “Wow, be sure to come to this store! They sell me milk in the evening after work!"

Don't limit yourself to NPS alone or just product quality assessments. Consider both indicators - especially since it is convenient to do it in one questionnaire.