What’s a Net Promoter Score and why is it important?

In a world where so much data and information is readily available to anyone who fancies loading up a web page, people can very quickly get a snapshot of your business in no more than a couple of clicks.

 

Think of Google, Facebook, Feefo, Twitter and websites such as checkatrade, Tripadvisor etc. – the moment you see a number of bad reviews, you’ve no doubt got some serious concerns about spending your money with said company.

 

Safe to say companies who care about their customers and the perception of themselves will work hard to make sure reviews are accurate, representative and understand the internal need to focus on customer experience so naturally they will receive positive reviews and in return more business.

 

A Net Promoter Score attempts to go one step further by not only measuring customer experience but is also used a predictor of business growth.

 

It is one question only and you may have been asked this at some point by big and small brands that your encounter if your buying activity and looks like this

 

This proven metric is used widely in the business world and provides a core measurement for customer experience management programs and easily interpreted by its simplicity.

Respondents are grouped as follows based on the response the give:

 

 

Promoters (Score 9 – 10) These guys are really passionate about your goods/services and are likely to come back for repeat business as well as refer you to others.

Passives (Score 7 – 8) These representatives are satisfied customers but aren’t as loyal as promoters and could be tempted away by your competition.

Detractors (Score 0 – 6) These are your unhappy customers who are likely to spread negative word of mouth about your business and can damage your brand.

By subtracting your detractors from your promoters, you end up with your Net Promoter Score and can range from -100 (everyone is a detractor) to +100 (everyone is a promoter). An NPS that is positive (i.e., higher than zero) is felt to be good, and an NPS of +50 is excellent.

 

NPS alone shouldn’t be the sole indicator of business growth and should complement further research such as asking your participants what you do really well and just as importantly, seeking out the negative feedback and learning how you can improve on these aspects.

In essence a really simple, valuable and powerful tool that can be really useful for your workforce to understand what your business does well as well as a great metric for your company to make visible and focus your customer service around.