The Power of your Net Promoter Score!
For those who don’t know, Net Promoter Score ®, or NPS ®, measures your customer’s experience, how likely they are to refer people to you, and predicts business growth. You’ve probably even provided information for this business metric without even realizing it during a survey response.
How is the Net Promoter Score calculated?
The NPS is calculated by using the answer to one key question, answer by using a 0-10 scale: How likely is it that you would recommend [COMPANY NAME HERE] to a friend or colleague?
Answers include the following response options:
Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).
Why your Net Promoter Score Matters
Ultimately, you need to be aware of how your clients perceive your brand and products. NPS data allows you to insight into the customer’s mind about their experience & journey with your company. If they aren’t a promoter, where can you improve, what went wrong, and why wouldn’t they recommend you to others? Your NPS is a prediction of your growth, so if your responses aren’t showing Promoters, then we have a problem!
How Can I use Net Promoter Score in my Business?
Net Promoter Score allows you to segment your customers by loyalty as well as identify unsatisfied or at-risk customers. It also allows you to benchmark against industry or competitor scores and uncover customer loyalty drivers. It is easy to complete with a fast one-question format and can be used to predict future trends.
Although the Net Promoter Score has gained huge popularity, there are some that criticize it. It can be seen to provide only a limited view of customer experience and the NPS question alone doesn’t provide any specific insights. This can be negated by adding open-ended follow questions or additional rating questions.
If you are part of our Red Barn Newsletter or a client, you’ve probably been sent a survey or two before and one of the questions we always ask is the Net Promoter Score question. However, we are firm believers in diving a little deeper and finding out why you answered the way you do. We always want to know what you like, if you find value, where we can improve – because if you don’t know the details, you can’t fix things and it can prevent you from getting a bad review on social media!
