Recently, Drive Research completed a Net Promoter Score (NPS) study. Similar to a Voice of Customer (VoC) research study, the objective of an NPS study is to gather data for your key performance indicators (KPIs).
The ultimate goal of these NPS surveys is to gather the information needed to make data-driven decisions to guide future marketing and business strategies. NPS is a popular benchmarking statistic in market research.
How is it calculated?
Using a scale of 0 to 10 where "10" indicates very likely to recommend and "0" indicates not at all likely to recommend, you ask your customers how likely they are to recommend your company or brand in your survey. Those who rate your brand "9" or "10" are considered promoters. Those who rate you "7" or "8" are considered passives. Those who rate you "0" through "6" are your detractors.
Promoters are actively recommending and promoting your brand in the community. They go out of their way to tell friends and family how good you are. Passives can be swayed to a competitor and don't love you or hate you. Detractors are those who are actively telling the community not to purchase your product or service. They detract from your brand.
NPS is calculated by taking the difference of the percentage of promoters and detractors.
- Promoters = 75%, Detractors = 20%, NPS = +55
- Promoters = 45%, Detractors = 35%, NPS = +10
- Promoters = 20%, Detractors = 60%, NPS = -40
Scores can range from -100 to +100.
Learn how to measure Net Promoter Score (NPS) and an NPS study looks like from start to finish.
This post gives an overview of the objectives, approach, and outcomes for a recent market research project for a local design-build firm. Here's our step by step process for conducting a NPS study.
NPS Study Objectives
A local integrated design-build firm partnered with Drive Research on a Net Promoter Score (NPS) market research study for the second consecutive year. The objectives of the market research were to provide the necessary data to better understand client satisfaction, the importance of factors when choosing a firm, and measure other key performance indicators (KPIs).
The data and findings from the market research provided unbiased, credible, and representative views to guide decisions. This study will be conducted on an annual basis. This year marks the second consecutive year the NPS study has been conducted with this client.
There are several types of studies organizations should conduct every year, such as customer studies, employee satisfaction studies, and brand equity studies.
Learn more about research you should be conducting yearly.
NPS Study Approach
To address the objectives at-hand, Drive Research recommended using a combination of online survey invitations sent via email and telephone phone calls to non-responders. The combination of these two methodologies ensured the best potential response rate and created a strong ROI.
This survey addressed the key objectives of the study including questions recommended by our survey team based on past NPS project experience as well as customized questions for the needs of the client.
Fieldwork began on November 13, 2018 and lasted until January 4, 2019. The survey consisted of 18 questions and took respondents 9 minutes to complete. Drive Research reached a strong response rate of 50%. 1 of every 2 clients responded to our survey outreach which is incredibly high.
The margin of error for this study is +/-11% at the 95% confidence interval which means if the survey were conducted again, 95 out of 100 times results would yield within +/- 11% points of stated totals.
Wondering what margin of error is? Or, how margin of error is calculated?
Here's our margin of error calculator.
NPS Study Outcomes
All findings, data, and results from market research studies remain confidential with the client. To give an inside look at the key findings, here are a few themes highlighted within the executive summary of the report.
For this study, the executive summary was broken down into 6 questions which were answered in detail with comparisons to results from the previous study:
- How likely are clients to recommend the brand?
- What drives loyalty with the brand?
- What do clients associate with the brand?
- What are clients most satisfied with at the brand?
- What is most important when selecting a company like the brand?
- What are the top sources of awareness for the brand?
In total, the report included 50+ pages. Sections of the report included the background and methodology, key findings, market research dashboard, infographic, recommendations, and a full appendix of question-by-question results with various cross-tabs of interest.
Knowing this was the second time this study has been conducted, a key piece of this report was the market research dashboard. A market research dashboard is a specific way to present data to help the reader easily identify how metrics and KPIs have changed. Learn more about how to create a market research dashboard.
Also, here's an inside look at how to measure market research KPIs including NPS.
Contact Our Market Research Company
Drive Research is a leading market research company that specializes in measuring key performance indicators (KPIs) for organizations around the world.
We have experience within numerous industries including advertising, marketing, higher education, financial services, healthcare, manufacturing, restaurants, retail, small business, travel and tourism, and more.
Do you have questions for our team?
Here are ways you can reach us:
① Email us at [email protected]
② Call us at 888-725-DATA
③ Send us a message on our website
④ Text us at 315-303-2040