CSAT/NPS Homepage

FRAMEWORK PLAN:

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Net Promoter Score:

NPS stands for Net Promoter Score, which is a metric used to gauge customer loyalty and satisfaction. It's a popular tool for measuring how likely customers are to recommend your company's products or services to others.

Here's how it works:

1. Survey: To calculate NPS, you typically send out a survey to your customers asking them one simple question: "On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?"

2. Score Classification:

   • Promoters (score 9-10): These are your loyal enthusiasts who are likely to recommend your company to others.

   • Passives (score 7-8): These customers are satisfied, but not enthusiastic enough to actively promote your company.

   • Detractors (score 0-6): These customers are unhappy and may even spread negative word-of-mouth about your company.

3. Calculate NPS:

   • Subtract the percentage of detractors from the percentage of promoters to get your Net Promoter Score.

   • NPS can range from -100 to +100. A higher score indicates more positive word-of-mouth and customer loyalty.

Here's the simplified formula:

NPS= % Promoters− % Detractors

For example, if 70% of respondents are promoters and 10% are detractors, your NPS would be 70 - 10 = 60.

Using NPS can help your company understand overall customer satisfaction and identify areas for improvement. It's a straightforward metric that can be easily tracked over time to monitor changes in customer sentiment.

Customer Satisfaction Score:

CSAT stands for Customer Satisfaction Score, which, as the name suggests, measures how satisfied your customers are with a specific interaction, such as a purchase, support call, or service experience.

Here's a simple breakdown:

1. Survey: To calculate CSAT, you typically ask customers a direct question like, "How satisfied are you with [the product/service]?" Customers then select a response from a predetermined scale, often ranging from "Very Unsatisfied" to "Very Satisfied". (1-10 in our scale)

2. Score Calculation:

   • Once you collect responses, you calculate the average satisfaction score.

   • The scale used in CSAT surveys can vary, but it's commonly a 5-point, 7-point scale or 10-point scale in our case.

3. Interpreting Results:

   • Higher scores indicate greater satisfaction, while lower scores suggest areas for improvement.

   • CSAT scores can be tracked over time to monitor trends and the effectiveness of customer service efforts.

Here's the simplified version:

CSAT=Total Satisfaction Scores/Total Number of Responses×100

For example, if you have 100 responses and the total satisfaction scores amount to 400 (on a scale of 1 to 5), your CSAT would be (100/400​)×100=%.

CSAT is valuable for understanding how customers perceive specific interactions with your company, allowing you to make targeted improvements and enhance overall customer satisfaction.