What is Net Promoter Score?
Net Promoter Score (NPS) is a metric specifically developed to measure customer loyalty, judging by a customer’s likelihood to recommend a product to others. The NPS survey is specifically centered around the question: “How likely is it that you would recommend Company to a friend or colleague?”
Customers can then respond on a scale from 1 (very unlikely) to 10 (very likely). Those responses separate customers into three categories:
● Detractors (score 0-6),
● Passives (score 7-8) and
● Promoters (score 9-10).
Detractors
Detractors are customers whose experience with your business was mostly negative. Without proper handling, detractors can go on to churn, leave bad reviews and cause negative word of mouth.
Passives
Passives are, as the name suggests, those that don't really care. Their experience with your company, product or service is neither positive, nor negative enough to influence their behavior.
Promoters
Promoters are the ones who boost profits as long-term customers and are more likely to refer your company. They are a great source of testimonials, reviews and future referrals.
Calculating Net Promoter Score
The total NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.
Net Promoter Score ranges from -100 (very bad) to +100 (very good).
Improve your NPS to grow
NPS surveys provide a company-wide feedback useful across many departments.
Customer Support
NPS data enable proactive customer support. Reach out to detractors and turn them around.
Marketing
NPS helps you find out who trusts in your brand and why. Use this to clear up your messaging.
Product
Customer feedback is necessary to take your product in the right direction. Give your customers a voice.
Human Resources
Just as it predicts customer loyalty, NPS can be used to improve employee retention as well. T his variation is called employee Net Promoter Score.
World's leading businesses trust NPS to help them grow
“Without trust, there can be no loyalty - and without loyalty, there can be no true growth.”
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What is a good Net Promoter Score?
A score greater than 0 means you are doing well. A score of +50 is something all businesses that want to achieve long-term growth should aim at.
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Nicereply is officially licensed as a vendor for Net Promoter Score by BAIN & COMPANY, the inventors of NPS.
Learn more about NPS on our blog or at netpromotersystem.com
NPS is a registered trademark, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.
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