How NPS Works in Telco In 2024

NPS Telco

Have you ever shopped in a telco store and after upgrading your phone, the sales consultant has asked you to complete the survey? Well, you’re not alone.

Last week I shopped at a telco, and I won’t reveal which one haha, however after upgrading my phone, the consultant asked me to complete the survey, and you could tell he was trying to nudge me towards a 10.

So it got me thinking, why would he ask that, what’s on the line for him, for me to give him a 10? I did some digging and it led me towards NPS in telco.

Understanding NPS in Telecommunications

Net Promoter Score (NPS) is a pivotal metric in the telecommunications industry, reflecting customer sentiment and loyalty.

It helps businesses to gauge the likelihood of customers recommending their services to others. It’s also a key talking point when a Telco presents to its shareholders.

You can also see through messageboards on Reddit, TikTok, and more, that NPS allegedly impacts potential commissions for consultants, stores and providers.

They are also allegedly not allowed to ask you for “a 9 or 10” as it is considered gaming. In my opinion, you should not be giving a 9 or 10 because someone asked you to do so.

Concept and Relevance of NPS

NPS is a valuable indicator of a telecom company’s relationship with its customers.

It measures customer experience and predicts business growth by asking customers a single question: “On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?”

The result is based on 3 categories and is broken down as such:

  • Detractors – Scores between 0-6
  • Passives – Scores between 7-8
  • Advocates – Scores between 9-10

Essentially, a 9 or a 10 is a pass mark in the eyes of the telco, whilst detractors are a big issue and impact the KPIs of the business.

Calculating NPS in Telco

Calculating the NPS in the telecommunications industry relies on a specific formula. You can find the NPS by subtracting the percentage of Detractors from the percentage of Promoters.

It is expressed as an absolute number lying between -100 and +100, and not as a percentage. This score can pinpoint areas of customer experience that need improvements.

You can visit this NPS calculator to better understand the calculations and the roles of detractors, passives, and advocates.

It helps Telco providers understand opportunity areas to further improve customer experience, or systems and processes hindering the teams.

The telecom industry often faces challenges in maintaining a high NPS due to intense competition and high expectations from the services provided.

During the Optus outage last year, the NPS score as revealed in their shareholder presentation, tanked for several months and has now nearly returned to pre-outage levels.

How Is NPS Measured?

NPS is measured through several methods such as email and text. The majority of NPS is now measured by email, with customers receiving the survey within 12 – 48 hours.

The survey will ask you if you’re happy and if you would recommend it to a friend, it also provides the telco with a chance to follow up on issues.

You will get the ‘rate between 0-10″ question in this survey. This is where your score will result back to the telcos nps result.

Conclusion

After dealing with a telco, if you’re truly not happy with the service provided, that’s where you can leave your feedback via the survey.

Your thoughts should be honest and precise, you need to decide whether or not you will advocate for that provider based on your experience.

Do not get influenced by team members asking for a 9 or 10, it should be purely based on how you feel after your experience.

Author

  • Michel Elijah

    Tech expert and strong interest in telco. I've worked in the tech industry for 4 years and have always had interest with mobile and internet providers.

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