NPS helps to increase customer loyalty, sales, and employees also start joining the companies. # **What is NPS?** Net Promoters Score (NPS) is a mathematical calculation used to analyse customer feedback. It gives structured feedback for your entire business. **Example:** **1. Bada Business** Bada Business has its app, content, and business functions by which customer engages. Our customers give us feedback on content, app, etc. and we ask them to rate us. In any type of business, you should take customer feedback on different touchpoints like customer service. Ask the customers for feedback like whether their call is being picked on the customer care centre or not and calculate it through NPS. If they give 0 ratings to your customer service, it means they are not happy with your customer care. It’s your duty to make them happy and bring your NPS from 0 to 10. **2.** [**Jabong.com**](http://jabong.com/) When Mr. Paritosh Sharma was working with [Jabong.com](http://jabong.com/), he was asked to increase the NPS score, which is very critical for the company. If your NPS score is less, then it means that your: - Customer is not loyal and will never tell any third person about your product - Customer is only with you till you give a discount to them - Customer has no attachment with you As we grew, the NPS of Jabong increased and made the investors happy and impressed on how we solved the problems of customers and quickly increasing the NPS scores. **How Jabong's NPS score has increased?** For increasing NPS score, you should understand the system thoroughly like: - How warehousing is done? - How do clothes come? - Where are vendors? - How warehouse packaging is done and further send? - What and why is the complaint of customers coming? - Where do we make mistake? We finally understood that active online users were our customers. When customers were having complaints, they used to tweet and expected that it should be addressed, but no one was responding actively from Jabong. We made a front-end team of 4 people dedicatedly working 24*7 on Twitter, Facebook, and social media. They responded on all their tweets with a quick solution to them by providing them with decision-making authority. Thus, the NPS score was structured. This team shared a link with the customers on which they ask them to rate their experience and due to the company's quick responses and solutions, the NPS is scored high. # **Types of Customers as per NPS** - **Passive Customer –** These customers are confused customers. Sometimes, they feel positive and sometimes they feel negative about you and the product. They are not able to make up their mind. - **Detracted Customer –** These customers are angry with you and don’t ever want to listen or see you. - **Promoter -** These customers tell the entire world about you that you are a good company and he enjoys working with you. You should get a filled NPS score from all your customers. NPS score should be given on all customer-facing touchpoints like your app, content, technology, customer care, etc. The service department should collate all these scores and create world-class customer service and products. $10 million funds were raised by Jabong after their NPS has increased. Customers see loyalty beyond logic in your brand, especially investors as they see customers love for you on the increase of NPS. # **How to Calculate NPS Score?** NPS Score = % of promoters - % of detractors **Example:** 100 customers gave you feedback. Out of this, 50% were your promoters and 30% were detractors. NPS Score = 50 – 30 20% is your NPS Score **_Good companies have an NPS score of above 60-65%._** **_World-class companies have NPS Score of above 80%_** You should: - Incentivise the promoters who are your most loyal customers. Love, give extra care, and services to them so that they get connected more with you. - Go to the detractors and say sorry to them. Ask them where the mistake had been done and listen to them patiently to understand their problem and go back to close those gaps. - Then, again go back to your customer and tell him that you have closed that gap. And, you want him to be your customer again to serve them best. Don’t push the customer if he doesn’t agree after this action. Passive Customer is the biggest customer base of any company. Business owners make the mistake of not paying attention to passive customers. They have the highest probability of becoming your promoters. Passive customers can become detractors also if not paid attention properly. He can become other brands' customers if someone gives them a discount. But, if you give them exclusive offers and discounts, then they can convert into your promoters. Every department’s main focus should be to convert passive customers to promoters. >_Revenue will grow at high speed if your passive customer converts to promoter._ COCA, which means Cost of Customer Acquisition, will always be less due to passive customers because the passive customers will tell about you and act as the word of mouth for you. # **How to Implement NPS?** Suppose if you are running a small business and first time you are doing customer feedback in your business, then you can use: **1. Google Sheets:** ·        Google sheet can be used for customer feedback. ·        Google sheet has a tool called Google Forms, which you can use to make different forms for different functions that is customer interfacing. ·        Behind this Google Form, there is an excel sheet. While the customer fills this form, his details automatically will come in this excel sheet. ·        Keep a minimum of one question and a maximum of three questions in your Google form. ·        Ask your customers to score between 0 to 10, wherein 0 is the least and 10 is the maximum. The customer will give you score and based on the score, categorise them into passive, detractor, and promoter customers. You have to convert: ·        **_Detractors to passive customers_** ·        **_Passive to promoter customers_** **2. Automated Tools:** ·        There are also many automated tools that can be used for NPS Scores. ·        Many tools are there on Google. You may download them as per your requirement. ·        The tool should be easy to use by your customer and through this tool, you should be able to send messages on WhatsApp so that when customers fill the data, it captures in it and you are not required to use multiple technologies. ·        Ask customers to give NPS feedback every month. ·        Head of the customer experience, who could be your CPO, should ensure that NPS keeps on increasing. This will create good experience for your customers, your investors will love you, and your company will grow very fast. NPS score is very critical for raising funds or going to IPO. Investors see your NPS before investing in your company because it reflects customers' love you.