NPS (Net Promoter Score) is a tool for gauging customer loyalty, which has a fairly simple mechanics, but at the same time well-deserved effectiveness in service quality assessment.
NPS + CSI
Research and calculation of customer satisfaction index (CSI)
and net promoter score (NPS)
To calculate the promoter score, the company’s customers are being asked one key question: “Please rate on a 10-point scale: how likely is it that you would recommend our company/product/service to a friend or colleague, where rating of 10 means that you would definitely recommend it, and 0 — that you would definitely not recommend it”. Then the customers are divided into 3 segments: promoters, neutrals and critics. Net Promoter Score (NPS) is measured by more than 70% of companies from the Fortune 1000 list. The NPS and profitability of companies in the B2C segment are considered statistically related.
Using NPS as a regular metric has proven itself in terms of identifying problem areas of any service or product due to the collection of detailed feedback from the “critics”. After certain shortcomings have been identified, management intervention usually follows (practice known as “closing the loop”).
CSI (Customer Satisfaction Index) is a customer satisfaction measurement technique that can be used separately or in conjunction with NPS.
The idea is that the customer satisfaction depends not only on the characteristics of the product or service, but also on the subjective importance of said characteristics for the customer. In the process of calculating the CSI index, the following tasks are also solved:
- Identify product parameters that have key impact on customer satisfaction;
- Identify the level of customer satisfaction with existing parameters (quality, price, staff, etc.);
- Analyze the differences between satisfaction levels of different consumer groups.
