NPS and Why Its Important in Mobile and Web Analytics

This article is a guide for companies looking to implement NPS® in their product analytics. It will outline what NPS® is and why NPS® is so important for product development and customer experience. It will include how to use NPS® within Countly’s Enterprise Edition, as well as some tips and tricks on improving overall NPS® scores.

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What is NPS®?

NPS®, or Net Promoter Score®, is an indicator of customer loyalty that calculates how likely a customer is to recommend a brand/product to others. It plays an important role in identifying customer loyalty and the probability of long-term commitment.

Ratings are obtained by surveying customers with the NPS® question, “How likely are you to recommend our product/company to others on a scale of 0 to 10?” While the question can vary slightly, it ultimately provides companies with a quantifiable value of how customers perceive their product(s).

NPS® uses a simple formula that takes an overall customer rating (positive and negative) to get a number between -100 and 100. Individual ratings out of 10 from users are categorized as belonging to one of three groups:

• Detractors - rating 6 and lower. They are disappointed with one or several aspects of your product and may even demote your brand among friends and colleagues.
• Passives - rating 7 or 8. They were satisfied but not enough to promote the product to others.
• Promoters - rating 9 or 10. They are your ideal target, will promote your business, and shape the ideal business model.

Among these, only the detractors and promoters contribute toward finding the NPS® score, which calculates the difference between the percentage of promoters from the percentage of detractors.

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NPS® = %Promoters - %Detractors

Why NPS® is Important to Customer Experience and Product Development

Most customer index surveys measure how likely a user is to use your product. By asking customers how likely they are to recommend your product to friends and family, NPS® adds a psychological element that provides a more accurate reflection of their sentiment.

For product managers, an NPS® Score is an important indicator of the broader performance and perception of your product with your audience. As such, it can indicate the areas for improvement and help guide further development. Supported by the use of product analytics, the team can then identify and define the specific areas that need focus.

The results of a Net Promoter Score® can also provide an alternative way of defining audience segmentation and measuring the performance of your app; growing loyalty by increasing the number of Promoters over time, or improving customer experience by decreasing the percentage of Detractors and Passives.  

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Tips to Improve Your Net Promoter Score®

It is essential to take the customer journey into consideration while aiming for a better score. Responses to NPS® surveys are also a reflection of how well-strategized you are during the entire process of conducting them.

Here are a few tips that will help provide a more positive experience for customers:

1. Avoid overwhelming customers

Product analytics tools provide the option to conduct multiple surveys during a customer life-cycle. But if customers are overwhelmed by the number of survey screens they encounter, they may soon feel put off. This will impact their willingness to take surveys in the future, and can also invite negative sentiments toward the brand.

2. Nudge post transaction

Nudge your customers to take surveys after a positive experience with your product, like a successful transaction or purchase. Such points of action can evoke better reactions from customers.

3. Measure by metric

Ask the customer what they did and did not like in a product so that there is an objective method for NPS® measurement that avoids pitfalls. These queries will also act as benchmarks for future R&D in product development.

4. Capture incidents

Similar to how purchases influence survey ratings, any incidents such as a service resolution, call-center interaction, or any milestone achievements by the user can trigger a need to respond. They need to be carefully evaluated so that the service ratings are not considered a strict reflection of brand popularity.

5. Keep it short

Follow-up questions to a simple NPS® survey will provide deep insights into customer struggles and factors that affect product success. Still, keeping the surveys short leaves customers with a positive feeling that will strongly influence future responses.

How to Conduct NPS® Surveys with Countly

NPS® is available as part of the Feedback feature set in the Enterprise Edition of Countly.

Every aspect of the NPS survey can be customized: the question asked, follow-up questions based on the scoring categories, survey time, frequency, as well as the overall UI design.

Most importantly, targeting for the survey can be customized to be property-based, behavior-based, or both. This enables you to dig deeper into your analytics data by combining the NPS® features with the Drill feature (for detailed insight into the responding users and groups), Crashes/Errors (to see the impact of technical issues on brand loyalty), Cohorts (for enhanced targeting and analysis), and Push Notifications (for further communication to boost engagement) among others.

The data collected can be viewed on the Countly platform under the NPS® feature or by adding a widget to your personal Dashboard, giving you a comprehensive overview of the customer experience.

In conclusion, a Net Promoter Score® is one of the most accurate ways to measure the overall performance of your product, or service, and the customer sentiment behind it. With Countly, it’s part of your product analytics strategy, empowering you to keep an eye on the bigger picture while allowing your team to take action that’s backed by data and insight.

If you’d like to see how we can help you achieve better product roadmap planning and enhanced customer experiences in your mobile and web apps, talk to one of our analytics experts today.