Net Promotor Score (NPS)
What is the Net Promotor Score?
The NPS is a way to quickly measure how satisfied your customers are with your business.
We don't all have the time and ability to do complete customer surveys, and sometimes our customers are too busy to answer lengthy forms.
But what if there was an easy way to get feedback from your customers, that was simple for them too?
One Simple Question
The basis of the Net Promotor Score is that one simple question can tell you a lot about how your customers perceive your business.
The question is: "How likely is it that you would recommend this company to a friend or colleague?"
Customers answer on a scale from 0 - 10, with 0 meaning Not At All Likely and 10 meaning Extremely Likely.
Calculating Your Score
Those who answer 9 or 10 are your "Promoters".
Promoters are loyal enthusiasts who will keep buying and refer others, fueling business growth.
Those who answer 7 or 8 are "Passives".
Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Those who answer 0 - 6 are your "Detractors".
Detractors (score 0-6) are unhappy customers who can damage your reputation and impede growth through negative word-of-mouth.
The percentage of detractors is subtracted form the percentage of Promoters to get the Net Promoter Score.
NPS score can range from a low of -100 (if every customer is a Detractor) to a high of 100 (every customer is a Promoter).
Monitoring your Net Promotor Score (NPS) gives you a quick indicator of the health of your business in terms of customer satisfaction.
Trust Builder helps you collect these responses and computes the score for you.
How To Read Your NPS Score
Companies with a higher ratio of Promoters to Detractors tend to grow more rapidly than their competitors.
Companies with the most efficient growth engines operate with an NPS of 50 to 80. The average firm sputters along at an NPS of only 5 to 10 - in other words, their Promoters barely outnumber their Detractors.
Many firms, and some entire industries, have negative Net Promoter Scores. This means that they are creating more Detractors than Promoters. Not good...
These low scores explain why so many companies can't deliver profitable, sustainable growth, no matter how aggressively they spend on marketing to acquire new business.
Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.