Net Promoter Score – NPS
Net Promoter Score (NPS)® is a powerful tool which measures customer experience and predicts growth of your business. It can be used in your online surveys to gauge customer loyalty and, in the long run, company’s health.
Beauty of NPS is that it is based on just one simple question: “How likely would you recommend this business to a friend or colleague?”
With Surview you can operationalize the resulting data which can provide insights into the “whys” behind the NPS score to drive engagement and improvement.
How to Calculate the NPS
NPS is a 0-10 scale. Respondents rate differently, depending on their experience with the interaction/s with the company. Once they have responded, based on their rating, customers are then classified in 3 categories: detractors, passives and promoters. Here is what their rating means:
- Promoters (9-10)
Those who rate 9-10 are called promoters. They are loyal enthusiasts who will keep buying and refer others, fueling growth of your business.
- Passives (7-8)
Those who rate 7 – 8 are called passives. These are satisfied but unenthusiastic customers who are vulnerable to competitive offerings. If they felt they will get better value other that your business, they will switch to that business.
- Detractors (0-6)
Those who rate between 0 to 6 are called detractors. These 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).
What is a Good NPS Score?
It is a simple question but it has a complex answer. NPS® can vary by industry, region, or characteristics of your customers like age, income level, or time with your company. Following image provides an overview of various industries. If you belong to any of these industries “Good” you can compare your score with them. If, you belong to some other industry, you can contact us for support on NPS.