Extensive research has shown that your Net Promoter Score®, or NPS®, acts as a leading indicator of growth. If your organization’s NPS is higher than those of your competitors, you will likely outperform the market, and managing your organization to improve NPS will also improve your business performance. Whether you are aiming for faster growth or increased profits, use NPS as the foundation of a measurement framework that is tightly tied to the customer journey.
How does it work?
Calculate your Net Promoter Scores using the answer to a single question, using a 0-10 scale: How likely is it that you would recommend [brand] to a friend or colleague? This is called the Net Promoter Score question or the recommend question.
Respondents are grouped as follows:
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 aDetractor) to a high of 100 (if every customer is a Promoter).
Not only is your NPS useful as an aggregate score, but knowing how individuals scored you can identify customers you should reach out to (either about helping share your brand, because they love you, or about figuring out what went wrong, in the case of those who gave you a poor NPS rating).
A big thank-you to The Promoter Network for their writeup on NPS, some of which has been reproduced here. To learn more, please visit https://www.netpromoter.com/know/