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We all got into marketing for a reason, but new marketing tools are constantly popping up to make your job easier. There are so many levels of marketing you can be involved with, and most of the time it seems like there is no end. As a marketing analyst, you will be expected to be constantly on the go, and some days you may feel like you are drowning in new marketing tools.
How Does the NPS Methodology Work?
What the NPS is trying to measure is a customer’s level of satisfaction with a company’s specific factors, products, or services in general.
In some ways, it’s also a way of measuring the “temperature” of one of the most prized aspects of marketing efforts: word-of-mouth marketing.
When calculating the NPS, a company may get a sense of how people talk about the brand to others.
As a result, he may direct strategies based on more criteria, particularly those aimed towards fidelity.
One advantage of the NPS is that it is a relatively easy-to-measure parameter.
The methodology entails calculating the proportion of detrators, neutrals, and, finally, promoters, or those who speak well of the company, in percentages.
Take a look at how this calculation is done.
The scale of questions used to calculate the NPS ranges from 0 to 10.
Let’s say you have a ten-question survey, and the customer gives you an 8 on seven of them and a 9 on the other three.
As a result, we have a score of 83/10 = 8,3 as a basic average.
With this note, the customer joins the promotor group, which includes all those who provide notes between 8 and 10.
There is also a group of passivos, who provide notes between 6 and 7, and a group of detratores, who should be grouped together if they give notes between 0 and 6.
The NPS calculation is as simple as using the formula below:
- NPS = percentage of promoters minus percentage of detractor
Imagine that you administered a survey to 100 people, with 70 of them being classified as promoters, 20 as passives, and 10 as detractors.
In this case, 70% of their customers are promoters, whereas 10% are dissatisfied with the items they were given.
As a result, your NPS will be 70 – 10 = 60.
It’s worth noting that the NPS scale ranges from -100 to 100, implying that this is a scale with a lot of range.
How May the NPS Assist You in Better Positioning Your Brand?
It’s worth noting that you may use the NPS to assess your company as well as your competitors, and there’s no need to do so.
As a result, the NPS may be the best tool for determining where your brand stands in the market.
Finally, it is not always possible to get information on a competitor, and in this case, the NPS calculation may be the only way to learn anything about her.
It goes without saying that you should take care of your own NPS in the first place, especially if it is low or negative.
Check out how to do it now.
How do you deal with skeptic clients?
Keep in mind that the NPS score is also influenced by the kind of questions you ask your clients.
If the questions are on irrelevant or envied topics, he will be of little use to you.
As a result, it is critical that you have no fear of the truth and seek answers to questions that are really pressing in your business.
As a result, knowing what to do when the proportion of detratores is more or higher than the proportion of promoters is critical.
It is at this point that the importance of the total number of questions is revealed, since it is from them that you will know what to do to improve.
So, if your brand was rated poorly on four out of ten questions, you’ll need to focus on improving your NPS from there.
How do you deal with promotional clients?
Although it may seem that they are not, promoter clients must also get your whole attention.
In sports, it’s common to say that the challenge isn’t getting to the top, but staying there.
In the business world, well-respected companies have the challenge of maintaining their good name and improving it even more.
Return to the questions that your business was assessed on and see what more you can do to improve it, always listening first to what your customers have to say.
Alternatively, if the item cannot be improved, work to maintain the standard that has won your customers’ favor.
What Is the Net Promoter Score (NPS) of Some of the Market’s Biggest Companies?
Exame publishes the NPS Awards every year, in which a rating of the best-performing companies in the market is revealed.
Entrepreneurs from the e-commerce, food tech, and financial sectors are evaluated.
The brands that stood out in 2023 were:
- Food Tech
- Bancário Setor
Exempla de NPS en la aplicación a las empresas
Outside of Brazil, Customer Guru is a good example of using the NPS as a market termometer.
Every year, she publishes the top 100 global brands with the highest NPS.
Apple leads the list in 2023, with an NPS of 47, while Costco, a United States-based retailer, is in the hundredth position, with 79 points.
It’s worth noting that what matters in this rating isn’t the score itself, but the circumstances in which it was calculated.
According to Customer Guru, the NPS will be higher or lower depending on when the survey was conducted.
As a result, the closer the research is conducted to the purchase, the less likely it is to assess customer satisfaction, since the customer is still experiencing the “calor” of post-purchase emotion.
See how this year’s top ten fared:
No NPS in Brazil
As we’ve seen, the revista Exame’s rating is the most important reference in terms of NPS in Brazil.
Ela publica once a year the results of a competition in which the company with the highest score wins a prize and the revista refers to as a “kit of experiences.”
According to the editors:
“O troféu de premiaço dos NPS Awards EXAME 2023 foi criado exclusivamente para a vencedora como forma de reconhecer as açes de centralidade do cliente, e será enviado diretamente à companhia.”
The fintech Nubank was one of the highlights of the NPS Awards in 2023.
Founded in 2013 by Colombian David Vélez, the company received even another boost in 2018, when it was accepted into the exclusive group of unicórnios, or businesses with a market value in the billions of dollars.
Cristina Junqueira, CEO of Nubank, spoke about the award she received from the magazine Exame:
“(…) a gente está muito satisfeito with este acreditaço. Since the beginning of Nubank, we have been committed to working and putting out our best effort every day and night. Today, we have almost 4,000 people working in the Nubank team to ensure that our customers are well-served (…)”
NPS um bom
What constitutes a good NPS, taking into account the unique characteristics of each business?
Also, how should the manager evaluate his or her numbers?
As we can see from the examples in the rankings, the NPS is a KPI that may be very subjective.
In this case, Customer Guru’s criterion seems to be quite accurate, since it gives more weight to responses received some time after the purchase.
As a result, a good NPS is one whose responses are collected in the most objective manner possible, avoiding distorted or emotional opinions.
What information about your company might the NPS provide?
An NPS aferido com exatido may provide useful information on topics such as:
- Produtos/services of high quality
- Organizaço e limpeza
- Purchase experience
- Possibilidade de pago
Frequently Asked Questions
Despite its ease of calculation, the use of the NPS requires some effort, and, as we’ve seen, the kind of questions asked determines whether or not good insights are generated.
As a result, I’ve compiled a list of frequently asked questions on the subject, based on my own experience and the industry’s most prestigious rankings.
What is a valid attestation?
In statistics, a valid amostra is one that has been collected in sufficient numbers to represent a population.
It’s also worth paying attention to the amostra’s qualitative component, or if it provides a true representation of the target audience.
How much time do I have to answer the question?
As previously stated, the timing of the submission of questions is critical in ensuring that the responses are as accurate as possible.
For example, in the case of Customer Guru rating, an appropriate period for sending out questions is about one or two weeks.
Who should pay attention to the Net Promoter Score?
Every company may and should establish an NPS to keep track of its finances.
With this useful avaliaço tool, you may learn not just about areas for improvement, but also about how well your own reputation is doing.
As everyone knows, credibility is an intangible and measurable factor that, if lost, may result in irreversible consequences.
As a result, the NPS should be monitored on a regular basis in order to keep the company’s reputation in good standing and to align the company’s operations with customer expectations.
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