What is Net Promoter Score?

Net Promoter Score® can be described as THE QUESTION. The question that is simple, yet, according to many studies, most effective. It is there to gather information that has the most likely to give you clear data on the performance of the company, as seen through the customer’s experience. Just take a look at What is Net Promoter Score blog post and know more about it.

Here are few insights about What is Net Promoter Score? and How Can We Use Them?

The question that we are talking about is the one you most likely encountered already:

How likely is it that you would recommend company/organization /product /service to a friend or colleague?

It is calculated with using a scale from 1-10, 1 being not at all likely, and 10 being extremely likely. Net Promoter Score® can be used to predict the growth of a business and to measure customer experience with the business.  It is also known as NPS® and it has been created by Fred Reicheld and Bain & Company.

For easier calculating the final score, respondents are grouped into three groups: Promoters, Passives, and Detractors.

Promoters are respondents that have given the score 9-10 and are the loyal and enthusiastic customers that will for sure spread the word about the good performance the company has and will inform their friends and colleagues.

Passives are customers that have given the score 7 or 8. They are loyal and satisfied customers, but not so enthusiastic about singing praise about the business.

Detractors are the ones that have given a score of 0 to 6. Most of the bad referrals your company can get are coming from this group.

What would be the best use of this scoring system and grouping the responses?

Promoters and Detractors are the groups of customers that need special attention. Promoters are the enthusiastic ones and should be valued as they can bring more business to the company and promote its growth. Some special treatment and you will keep these people, and their friends, as long-term customers. Detractors can bring bad word-of-mouth to your company and will almost surely spread it to their friends and colleagues. When you receive a bad score, your Customer Care Department should be in touch with those customers and pinpoint from where the dissatisfaction came from.  This will allow you to know where your weak points are, to improve them, and also to show those customers that their opinion is valued and possibly offer them a refund or a free product to ease the situation, and maybe even change their opinion about not going back to your company.

Uses of NPS®  are vast. Using every group of respondents can help you improve your company, see where it maybe lacks and just help you grow. The simple question can be incorporated into other Customer Satisfaction Surveys or can be used as a stand-alone survey question. Refer to The Use of Online Surveys in Evaluation.