How to Improve your NPS using AI

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In the ever-evolving landscape of customer experience, leveraging advanced technologies like artificial intelligence (AI) can provide a significant edge. One key metric for assessing customer satisfaction and loyalty is the Net Promoter Score (NPS). By integrating AI into your strategy, you can gain deeper insights, personalize interactions, and proactively address customer needs. In this article, we explore how you can improve your NPS using AI, detailing practical approaches and the transformative impact AI can have on enhancing customer loyalty and driving business growth.

Net Promoter Score: A Comprehensive Overview

Let’s find out about NPS first before jumping straight into improve your NPS using AI! The NPS metric is widely utilized in assessing customer loyalty and satisfaction. The likelihood of customers recommending a product or service to others determines its overall rating.

It is crucial to keep in mind that this score does not provide a comprehensive assessment of customer satisfaction. However, it remains a valuable resource for making data-driven enhancements to customer experience. Positive business outcomes are often associated with high NPS scores. Some of these outcomes include:

  • Enhanced financial performance

  • Foster customer loyalty

If you are looking to evaluate customer loyalty and satisfaction using a straightforward yet effective metric, NPS is an excellent starting point.

Businesses can gain valuable insights into customer opinions and experiences, which can then be used to make data-driven decisions aimed at improving satisfaction and loyalty.

Find out more: The Power of NPS: From Score to Actionable Insights

Net Promoter Score Calculation Guide

Net Promoter Score Calculation Guide

The NPS is calculated based on a straightforward inquiry: “Please rate, on a scale of 0 to 10, the likelihood of you recommending this product or service to others.”

There are three distinct categories in which customer responses can be classified:

  • Promoters: Customers who score 9 or 10 and are highly likely to recommend the product or service. 

  • Detractors: Customers who are unlikely to recommend the product or service, rating it between 0 and 6.

  • Passives: Customers who provide a score of 7 or 8, indicating a neutral stance towards recommending the product or service.

After categorizing the responses, the NPS can be calculated by subtracting the percentage of detractors from the percentage of promoters.

As an illustration, if 60% of the respondents are promoters and 10% are detractors, the Net Promoter Score (NPS) would be calculated as 50 (60 – 10 = 50). The NPS score is a measure of customer loyalty and satisfaction, ranging from -100 to 100. A higher score indicates higher levels of loyalty and satisfaction.

Read more: What is the Impact of NPS? Turning Promoters into Brand Advocates

With the NPS, Who Gains?

The NPS is commonly utilized by professionals in marketing, sales, and customer experience.

Measuring loyalty can be highly advantageous for Customer Success Managers, Marketing Managers, Sales Managers, and Chief Experience Officers. In addition, leadership teams rely on this metric to evaluate the overall health of the business and make informed strategic decisions.

In essence, it provides assistance from the ground up to the top:

  • Individual contributors, especially those in sales and customer-facing positions, can benefit from NPS as it offers valuable insights into how their interactions impact customer loyalty and advocacy. When customers give high NPS scores, it indicates that they are more likely to refer to others. This suggests that they have had positive interactions and developed good relationships.

  • NPS can be used as a crucial performance metric for teams, providing insights into the influence of their combined efforts on customer loyalty. Having a high Net Promoter Score (NPS) can result in team recognition and serve as a source of motivation. Conversely, a low NPS can indicate areas that require improvement or realignment.

  • From a company perspective, a high NPS score indicates robust customer loyalty, the possibility of organic growth through referrals, and a favorable market reputation. On the other hand, a low NPS can indicate issues with products, services, or customer relationships that may block business expansion.

NPS Latest Benchmarks

Industry-specific NPS benchmarks can exhibit significant variations. Typically, an NPS score of 0 is considered to be average. Values exceeding 20 are considered satisfactory, while those surpassing 50 are deemed exceptional. However, only values exceeding 80 can truly be regarded as world-class.

Take Tesla, for example. This company is widely recognized for its cutting-edge electric vehicles and energy solutions. It serves as a prime example of a company that boasts a high NPS.

In 2020, Tesla achieved an impressive NPS score of 96, which is among the highest in the automotive industry. This remarkable achievement highlights Tesla’s exceptional ability to foster customer loyalty and advocacy.

Tesla customers are known for their unwavering loyalty to the brand. According to Experian’s findings, a significant majority of Tesla owners, approximately 71%, opted to replace their old Tesla with a new one.

The Revolutionary Impact of AI on Net Promoter Score

The Revolutionary Impact of AI on Net Promoter Score

Various factors can impact your strategies to improve your NPS using AI, as they have the potential to alter your customers’ perceptions of your business. Factors such as the efficiency of your service, the ease of reaching out to your customer support, and the variety of channels available can all influence the overall experience.

Here are a few ways in which AI can enhance NPS:

  • Providing enhanced perspectives on the customer journey: Artificial Intelligence is a robust method for gathering extensive amounts of client information and transforming that data into valuable insights. Understanding your customer’s journey and identifying potential roadblocks is crucial for effectively addressing any issues that may arise and ensuring client satisfaction in your strategies to improve your NPS using AI.

  • Exploring fresh pathways for effective problem-solving: Artificial Intelligence solutions, such as chatbots and intelligent virtual agents, have the potential to enhance the efficiency of self-service environments for customers, so that it will improve your NPS using AI. Companies have the ability to develop AI tools that provide immediate responses to customer inquiries around the clock. These tools also enable customers to carry out transactions and handle basic account modifications.

  • Achieving faster time to resolution: By leveraging artificial intelligence, your customers can be guided towards the most efficient path to resolving their problems in your strategies to improve your NPS using AI. Once a keyword is identified in a customer’s query, a sophisticated routing system can direct the customer to the most suitable agent to address their specific requirements. By implementing this approach, the likelihood of the client repeating their concerns or being redirected to another customer service agent is significantly minimized.

How to improve your NPS using AI: Using Automation and Generative AI to Increase NPS Score

How to improve your NPS using AI: Using Automation and Generative AI to Increase NPS Score

Gather Feedback in Real time

Utilizing AI via chatbots following a purchase or support interaction enables the collection of customer feedback in real-time in your strategies to improve your NPS using AI. AI analysis has the ability to categorize feedback into three distinct categories: positive, negative, or neutral.

By analyzing this data, businesses can identify common pain points and take steps to address them, ultimately enhancing the customer experience.

Examine the Sentiment of Consumer Feedback

Analyzing feedback data allows AI to identify patterns and trends in your strategies to improve your NPS using AI. When analyzing customer feedback, sentiment analysis is used to determine the overall tone, while natural language processing (NLP) is employed to identify specific issues or concerns.

Gather Information through a Variety of Channels

Utilize artificial intelligence to enhance the Net Promoter Score (NPS) by examining customer feedback obtained from various sources such as social media, email, and support interactions. By collecting feedback from various sources, businesses gain valuable insights into customer sentiment and pinpoint areas for improvement.

In conclusion, improve your NPS using AI offers a powerful means to enhance customer satisfaction and loyalty. By harnessing AI’s capabilities in data analysis, personalized interactions, and predictive insights, businesses can proactively address customer concerns and foster a more positive customer experience. Embrace AI-driven strategies to boost your NPS, cultivate stronger customer relationships, and propel your business towards sustained success in a competitive market.

Linda Bui
Linda Bui Content writer at Doran

Hey! I'm Linda Bui. I'm a career-changer. Bootcamp grad & Dev.

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