Measure customer loyalty with Net Promoter Score by analyzing customer intention using Kimola Cognitive.
Classify customer feedback to calculate NPS value.
Track customer experience KPI’s by analyzing NPS automatically. Leverage Net Promoter Score (NPS) as a popular customer satisfaction metric that measures the willingness of a customer to recommend a product or service to others. Get it automatically with Kimola Cognitive and report one of the top ten most influential metrics in the field of Customer Relationship Management. Use the results to evaluate and monitor customer loyalty.
Even though preparing an NPS survey and calculating an NPS value is easy, surveys might not be an option in some cases. Especially when asking survey questions to customers is impossible, conventional methods are not applicable to calculate NPS. These scenarios require social data and sentiment analysis using deep NLP (Natural Language Processing) techniques to calculate NPS without asking questions to consumers.
Social listening tools can track conversations around a product, service or brand from e-commerce sites, social networks, forums, blogs, and news sites. Some of these conversations will have positive and negative sentiments, and some will contain data that can not be classified as positive or negative. This stage is where an in-depth NLP (Natural Language Processing) technology comes in to identify conversations if they are subject to sentiment analysis. These classifications will turn into Promoters, Passive and Detractors as follows;
So, the calculation of the percentage of Promoters, Passive and Detractors will enable us to apply the conventional NPS formula. For example, if 35% of respondents are detractors (post, comment or review with a negative sentiment), 45% are passives (neither positive nor negative), and 20% are promoters, the NPS score will be 20-35 = -15.
Keep in mind that people tend to share negative reviews for a product or service because of the nature of social data. So always compare the NPS score with the industrial benchmarks.
The Net Promoter Score (NPS) is a metric employed to gauge customer loyalty and satisfaction by assessing their inclination to recommend a product, service, or company to others.
NPS is determined by asking individuals one question: "How likely are you to recommend [product/service/company] to a friend or colleague?" They rate their likelihood on a scale from 0 to 10. Based on their responses, respondents fall into one of three categories: Promoters (scoring 9-10), Passives (scoring 7-8), or Detractors (scoring 0-6).
NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. The Passives are not included in the calculation. The formula is: NPS = % Promoters - % Detractors.
Promoters: Respondents who rate the likelihood to recommend as 9 or 10.
Passives: Respondents who rate the likelihood to recommend as 7 or 8.
Detractors: Respondents who rate the likelihood to recommend as 0 to 6.
A positive NPS score indicates that a business has more Promoters than Detractors, suggesting a higher likelihood of customer satisfaction and loyalty.
A negative NPS score indicates that a business has more Detractors than Promoters, suggesting dissatisfaction and potential areas for improvement.
NPS is valued for its simplicity and effectiveness in measuring customer satisfaction and loyalty, enabling businesses to grasp their strengths, weaknesses, and areas for improvement. Moreover, businesses and CX (Customer Experience) teams can utilize NPS to measure Key Performance Indicators (KPIs) for various departments such as customer support, logistics, design, pricing, and more. This approach allows for the measurement of departmental performance and the formulation of actionable strategies based on customer feedback.
NPS scores can vary by industry, so it's important to compare scores within the same industry.
Scores can also vary by region, demographics, and other factors, so it's essential to consider context when interpreting scores.
Trends in NPS scores over time are also important indicators of customer satisfaction and loyalty.
Yes, businesses can benchmark their NPS scores against competitors within the same industry to assess their relative performance and identify areas where they can gain a competitive advantage. Additionally, Kimola Cognitive is commonly employed to analyze competitor reviews as well. Through this analysis, companies can compare KPIs for each department and generate comprehensive reports for informed decision-making.
The frequency of measuring NPS scores can vary depending on the business and industry. Some businesses measure NPS scores quarterly, while others may measure them annually or on an ongoing basis to track customer sentiment and satisfaction. It's also important to consider that review size matters. Calculating the volume of reviews received from the digital world can help determine the optimal time range for measurement. This ensures that businesses capture enough data to make reliable assessments of customer sentiment and satisfaction levels.
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