opinion
How Do You Measure Quality?
We talk through how Roq measures the quality of its service with the Net Promoter Score (NPS) model.
At Roq, we advocate for quality. Quality throughout the Software Development Lifecycle (SDLC), quality throughout testing and quality throughout our delivery. However, we need to make sure that we are delivering quality services to our clients every day and that we have the correct measures in place to back this up. To do this, we regularly survey our customers to find out their view on our service delivery and ask them a simple question to ascertain our ‘Net Promoter Score (NPS)’ - “how likely is it that you would recommend Roq to a friend or colleague?”
So, what is a Net Promoter Score?
NPS is a well-known metric used by businesses to measure customer experience and loyalty. It was developed by Fred Reicheld, a Bain & Company consultant, in 2003 and has since become a widely adopted and important tool for businesses of any size.
The idea behind NPS is simple yet effective. Clients are asked the question, “On a scale of 0-10, how likely are you to recommend our product or service to a friend or colleague?” Clients who respond with a score of 9 or 10 are considered “promoters”, while those who respond with a score of 6 or lower are “detractors”. The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters, resulting in a score between -100 and +100.
Here at Roq, we are currently tracking our own NPS at +73, placing us above the likes of Apple (+47), Google (+11), Microsoft (+45) and Facebook (-21). Although we are just lagging behind Starbucks (+77), the seemingly harsh rating systems of promoters and detractors shows how difficult it is to retain client advocacy and engagement over a sustained period of time.
The concept of measuring customer satisfaction isn’t new, but what makes the NPS so powerful is its ability to provide actionable insights for businesses. Unlike traditional client satisfaction surveys, NPS focuses on the likelihood of clients recommending a business to others. This highlights the importance of client loyalty and advocacy, both of which are key drivers of business growth.
Since its introduction, the NPS has become a popular tool for businesses to measure client experience. It is used by companies across a wide range of industries, from technology and finance to healthcare and retail. The simplicity of the metric means that it is easy to implement and interpret, making it an accessible tool for businesses of all sizes.
Why we believe a Net Promoter Score is beneficial to our business
Simple and easy to understand: The NPS survey asks a single question, making it easy for clients to understand and respond. It is also easy for businesses to implement and track on a regular basis.
Provides actionable insights: The NPS score provides businesses with a clear understanding of their client loyalty and advocacy. It helps them identify areas where they need to improve and take actionable steps to increase client satisfaction.
Enables benchmarking: Since NPS is widely used across industries and businesses, it enables benchmarking and comparison with competitors and best-in-class companies. This can help businesses identify opportunities for improvement and stay ahead of the competition.
Improves business performance: NPS has a significant impact on business performance. Higher NPS scores are associated with higher customer retention, increased sales, and improved profitability.
Are there any limitations?
Simply asking a single question can be limiting and you may lose additional context when a client is giving feedback. Using the NPS question as part of a broader client satisfaction strategy is crucial. At Roq, NPS is tracked alongside other metrics and in alignment with our Service Governance & Assurance meetings.
Our best practices for implementing NPS
Set clear goals and expectations: Before implementing NPS, it is important to set clear goals and expectations for the metric. Businesses should define what they want to achieve, how NPS will be used, and who will be responsible for analysing the results.
Use best practices for survey design: The NPS survey should be designed using best practices such as avoiding leading questions, using clear language, and keeping the survey short and simple.
Follow up with detractors: It is important to follow up with detractors to understand their feedback and take corrective action. This can help improve customer satisfaction and transform detractors into promoters.
Track and share results: NPS scores should be tracked over time to monitor progress and identify trends. Results should be shared with stakeholders across the organisation to create a culture of client-centricity and drive accountability.
If you’d like to discuss NPS and how Roq uses it to deliver quality in more detail, I’m always happy for you to reach out to me on LinkedIn or through email – matthew.smalley@roq.co.uk.
To learn more about Roq’s services and how we can support your business, take a look at our website or chat to a member of the team – ask@roq.co.uk