14 Aug

Unlocking the Secrets of a Good NPS Score


The ultimate goal of every customer support business is to provide high-end and satisfactory services to customers. However, building brand loyalty and retaining customers requires delivering high-quality services. Customers frequently talk about tremendous and negative experiences with others, generating word-of-mouth advertising. Such opinions are closely related to customer experiences.

Happy customers become loyal brand advocates  and contribute to a company’s growth and success. Net Promoter Score (NPS) is a powerful metric that measures customer satisfaction and loyalty, providing valuable insights into how well a business is performing in the eyes of its customers.

This blog post will dive deep into the secrets behind a good NPS score and explore strategies to unlock its full potential.

Understanding NPS (Net Promoter Score)

NPS is a customer satisfaction metric  gauges a customer’s willingness to recommend a company’s products or services to others. The NPS survey typically asks customers to rate their likelihood of recommending the company on a scale of 0 to 10, with 0 being “Not at all likely” and ten being “Extremely likely.” Based on their responses, customers are segmented into three categories:

Promoters (9–10):  These are devoted customers who had a positive experience and are inclined to refer the business to others.

Passives (7-8): Although passives are delighted customers, they need more promoters’ zeal. They are more susceptible to competitors’ offers or are not inclined to refer the products or services to others.

Detractors (0–6): Detractors are  unhappy customers  who are likely to spread negative word-of-mouth about the company and the products and services offered.

To calculate NPS, one must use the following formula

Promoters (in%) – Detractors (in%)
The resulting score can range from -100 to 100, with higher scores indicating more positive customer sentiment.

The Impact of a Good NPS Score

A high NPS score has a direct correlation with business success. It serves as a key performance indicator for customer loyalty and helps in the following ways:

  • Customer Retention and Loyalty: A good NPS score indicates that substantial customers are satisfied with their experience and will likely refer the company’s products and services to others. They are more likely to become repeat buyers, leading to an increase in customer retention rates. Loyal customers generate recurring revenue and become brand advertisers, spreading positive word-of-mouth about the company, which can attract new customers.
  • Increased Referrals and Organic Growth: Promoters, the customers who rate the company highly on the NPS scale, are loyal and enthusiastic about sharing their positive experiences with others. Word-of-mouth references from satisfied customers hold tremendous influence and can significantly increase new customer acquisition. Since referrals are essentially free marketing, a good NPS score can save on advertising costs while driving organic growth.
  • Early Warning System for Customer Issues: A declining NPS score can serve as an early warning system for potential customer issues. A drop in satisfaction levels may indicate unresolved problems, product deficiencies, or issues with customer support. Businesses can promptly address these concerns and prevent customer churn and negative word-of-mouth.
  • Competitive Advantage: In industries where products or services are similar, customer experience becomes a key differentiator. A company with a higher NPS score stands out, gaining a competitive advantage. Customers are likely to choose a company with a reputation for exceptional service and customer satisfaction, even if its offerings are slightly more expensive than competitors.
  • Customer Feedback and Continuous Improvement: NPS surveys provide valuable insights into customer perceptions and expectations. Businesses can identify pain points and improvement areas by actively listening to customer feedback. Addressing these issues directly leads to a better customer experience and higher NPS scores. This continuous improvement process enables companies to stay ahead of the competition and adapt to changing customer needs.
  • Brand Reputation and Trust: A good NPS score contributes significantly to a company’s brand reputation and fosters trust among potential customers. Positive reviews and recommendations from satisfied customers build a favorable image for the company in the marketplace. Trust is a crucial factor in consumer decision-making, and a high NPS score helps establish trustworthiness and credibility.
Factors Influencing NPS Scores

Several factors influence a company’s NPS, which is crucial for unlocking a good NPS score. Some key elements include:

  • Product or Service Quality: The quality of a company’s product or service plays an essential role in shaping customer satisfaction. Customers expect products or services to fulfill their needs and deliver value. Customers who receive products or services that meet or exceed their expectations usually become promoters. On the other hand, low product quality or service issues can result in detractors and negative NPS scores.
  • Customer Support: Responsive and efficient customer support is vital in maintaining a good NPS score. Customers expect quick and effective resolutions When they encounter issues or have questions. A company’s ability to quickly address customer concerns and provide satisfactory solutions can turn detractors into passives or promoters. On the contrary, poor customer support can lead to dissatisfied customers and negative word-of-mouth.
  • Personalization: Customers appreciate personalized experiences and offerings. Tailoring products or services to individual needs and preferences can significantly impact customer satisfaction and loyalty. Personalization makes customers feel valued and understood, which, in turn, fosters a positive emotional connection with the brand and increases the likelihood of them becoming promoters.
  • Ease of Doing Business: Customers value the convenience and comfort of doing business with a company. Simplifying the buying process, providing user-friendly interfaces, and minimizing bureaucracy can enhance the customer experience and increase NPS scores.
  • Post-Purchase Engagement: Engaging with customers after a purchase is crucial for maintaining loyalty. Post-purchase engagement can involve follow-up emails, personalized recommendations, loyalty programs, and special offers. Positive post-purchase interactions can turn satisfied customers into promoters and encourage repeat business.
  • Competitive Landscape: The competitive landscape can easily influence NPS scores. Companies must differentiate themselves in highly competitive industries based on customer experience and service. Outperforming competitors in customer satisfaction can lead to more promoters and competitive advantage.
Strategies for Improving NPS Scores

To boost NPS scores, businesses must adopt a customer-centric approach and implement effective strategies that address customer needs and pain points. Here are some effective methods:

  • Listen to Customer Feedback: Customer feedback from NPS surveys and other channels. Analyze the feedback to identify trends and pain points and take the necessary actions to address them.
  • Close the Loop with Detractors: When detractors provide negative feedback, it’s crucial to address their concerns quickly. Contact detractors individually to understand their issues better and offer personalized solutions. A proactive and empathetic approach can turn detractors into satisfied customers, boosting NPS scores and preventing negative word-of-mouth.
  • Celebrate Promoters: Identify and celebrate promoters who consistently give high NPS scores. Acknowledge their loyalty and encouragement through personalized thank-you notes, exclusive offers, or loyalty programs. Recognizing and rewarding advocates reinforces their positive behavior and strengthens their emotional connection with the brand.
  • Agent Training and Engagement: Happy employees often lead to happy customers. Invest in training and engagement programs to ensure agents have the tools and motivation to deliver exceptional customer experiences.
  • Set Realistic Expectations:Be transparent about your products and services, setting realistic expectations with customers. Overpromising and underdelivering can lead to dissatisfaction and negative NPS scores.
  • Foster a Customer-Centric Culture:Promote a customer-centric mindset across all levels of the organization. Ensure every agent understands customer satisfaction’s significance and how their role contributes to it.
  • Engage with Passives: Passive customers may be satisfied with the company but need more enthusiasm for referring it to others. Engaging with passives is an opportunity to turn them into promoters. Seek feedback from passives to understand how their experience can be enhanced. Offer incentives or special offers to encourage them to become more proactive in promoting the company.
  • Create and Share Success Stories: Share success stories of satisfied customers who have benefitted from the company’s products or services. Testimonials, case studies, and user-generated content can be powerful tools for influencing potential customers’ decisions. These stories showcase real-world experiences and build trust in the brand.

Apart from adopting the abovementioned strategies, companies must monitor the NPS regularly. This leads to an improvement in NPS. Companies can keep their NPS on an upward trajectory by:

  • Regular NPS Surveys: Conduct NPS surveys regularly to track changes in customer sentiment and identify trends over time.
  • Benchmarking: Compare your NPS score with industry benchmarks to understand where you stand with your competitors and identify areas for improvement.
  • Root Cause Analysis: Perform a root-cause analysis for low NPS scores to identify the underlying issues. Addressing these issues directly will lead to higher satisfaction levels.
  • Iterate and Innovate: Use customer feedback to drive innovation and continuously iterate on your products, services, and customer experience.

A good Net Promoter Score reflects a company’s dedication to customer satisfaction and loyalty. By understanding the factors that influence NPS scores and implementing effective strategies for improvement, businesses can unlock the secrets to a high NPS score and build lasting relationships with their customers. Remember, customer satisfaction is an ongoing journey, and each step taken toward enhancing the customer experience will yield significant long-term benefits for the company.

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