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What Drives Your Net Promoter Score

What Drives Your Net Promoter Score?

If you were given two weeks to improve your Net Promoter Score (NPS) do you know where to focus to maximize the benefit? You can if you do a key driver analysis on your survey.

Many companies conduct NPS surveys, but lack an improvement strategy as they do not know where to focus their efforts. A common strategy is to tell their employees to be more customer-focused, and when the NPS score doesn’t improve the employees are unfairly held accountable.

Understanding Your NPS Drivers

NPS driver analysis is hugely powerful as it shows what factors directly influence your customer loyalty (your NPS score). By understanding what drives your customers’ loyalty you can focus on those areas of your business your customers deem important to them.

If you do not know what attributes drive customer loyalty you run the risk of focusing on the wrong area. By understanding where you are under performing from your customers’ perspective you can concentrate your time, effort, and resources there to maximise your ROI.

Understanding your attributes may also point out areas where you are over-delivering, so you can divert expenditure from those areas to the under performing areas making you more cost effective.

How To Determine Your Business Drivers

To demonstrate this, take a look at one of our client’s drivers. Their NPS score was in the upper teens and had to improve it, but didn’t know where to focus as budget was an issue.

Correlation of NPS to Business Drivers. Key Driver Analysis results

In addition to the NPS question (“How willing are you to recommend us to a colleague or friend?”) we asked three more questions around their core business areas, being the ordering process, the delivery, and responding to queries.

Based on customer responses, the initial reaction would be to focus on the ordering process as it had the lowest satisfaction score (3.2 out of 10, see the table under the graph above).

We went a step further using correlation analysis and correlated the NPS scores to the satisfaction scores for the three business areas. The results showed that quality of delivery had a higher correlation to customer loyalty than the ordering process. In fact its correlation coefficient was twice that of ordering (0.84 vs. 0.48).

Summary

Due to this higher correlation if the company focused on delivery quality they would increase their NPS score by a greater margin than if they had focused on the ordering process. This analysis enabled them to focus on the areas that were more important to customers than initially thought.

Although simplistic, this example shows the importance of not only conducting NPS surveys (or any customer satisfaction survey), but the importance of understanding the drivers behind the scores. This understanding will enable you to be strategic and cost effective focusing on those areas of your business that will give the best bang for your bucks.

Do you conduct Net Promoter Score surveys and don’t know what to do with the results? Want to identify where to focus your efforts? Give us a call or email us douglas@cra.co.za

Douglas MacGregor

Customer Relationship Auditing

(011) 805-3588

(082) 414-9394

douglas@cra.co.za

www.cra.co.za