Customers are asked one simple question – how likely are you to recommend this business to a friend or colleague? They are asked to rate this on a scale of 0 to 10. This can be asked on its own or added to a survey or questionnaire.
Those who give a score of 0 to 6 are considered “detractors”, those who give a score of 7 or 8 are considered “passives”, whilst those who give a score of 9 or 10 are considered “promoters” – essentially the people who love your brand.
This information is used to calculate the Net Promoter Score for your business. NPS is calculated by subtracting the percentage of detractors from the percentage of promoters, with the possible end result ranging anything between minus 100 and plus 100. A negative score would show there were more detractors than promoters, and would be a warning sign for your business.
Businesses often adopt Net Promoter Score as one of their core metrics as it is a good way of determining how loyal your customer base is.
One of the advantages of using NPS as opposed to other measures is that it is used across a number of industries and by a large number of businesses meaning that NPS data is readily available and it is possible to use how other companies are performing as a benchmark.
A low Net Promoter Score would suggest that changes need to be made to your business – changes that would either increase the number of promoters or decrease the number of detractors. Like all measures of satisfaction it can fluctuate so it is likely to be something you’d want to track on a regular basis.
Our team have helped businesses adopt Net Promoter Score successfully into their business. We can also help you identify relevant benchmarks, whether that be competitors or industry averages for Net Promoter Score.
As we are not just a research company, we can also help you devise strategies in order to improve your Net Promoter Score, rather than just focusing on measurement.
The online retailer Amazon is one of the companies with a high Net Promoter Score - theirs currently stands at +69.