A while back we posted a blog titled “What is NPS and why do I need it?” It’s a good primer on the benefits of using Net Promoter Score to monitor customer satisfaction. However, we still get questions about it.
NPS is an integral part of our survey platform, so we want to provide more clarity on this important measure.
In this follow up blog, we’ve rounded up 10 common questions for an easy-to-read Q&A.
Q. What is Net Promoter Score?
A. NPS is a loyalty metric. It measures the satisfaction of those that are affected by your brand (e.g. your customers, your members, and/or your employees.) It is easy to collect, easy to calculate and easy to interpret.
Q. What is Net Promoter Score used for?
A. It is a standardized way for organizations to measure and monitor the overall perception of their brand. It also gives insight into what drives those perceptions.
Q. When was Net Promoter Score created?
A. NPS was developed in 2003 by Fred Reichheld, a partner at Bain & Company, as a way to measure how well an organization “generates relationships worthy of loyalty.”*
Q. What is the Net Promoter Score question?
A. On a scale of zero to ten, how likely are you to recommend our business to a friend or colleague?
Q. How is Net Promoter Score calculated?
A. Respondents are grouped into three categories:
1. Promoters: Score of 9 or 10 (Advocates)
2. Passives: Score of 7 or 8 (Neutral)
3. Detractors: Score of 0-6 (Dissatisfied)
From here, calculating a score is simple. % of Promoters - % of Detractors = NPS
Q. What does Net Promoter Score tell us?
A. First and foremost, NPS gauges loyalty. But it can also help identify strengths and weaknesses. Most importantly, it can be an indicator of future growth.
Q. What is a good Net Promoter Score?
A. In general, any score above zero is considered good. However, to really get an accurate picture, you must look at the average for your industry.
Q. Can Net Promoter Score be negative?
A. Yes. Scores can range from -100 to 100. Here’s a general overview:
Q. How can you improve your Net Promoter Score?
A. Use the data you collect to improve your score! Focus on converting your Passives and Detractors into Promoters. These customers are loyal. They are enthusiastic about your brand. And, most importantly, they will refer new customers to you. Start by listening to what your Passives and Detractors have to say. Follow up with them. Correct the issues they’re having.
Q. Can you use Net Promoter Score for employees?
A. Yes. Employer NPS (or eNPS) can be used by employers to gauge employee satisfaction and engagement levels. The question is modified slightly, (On a scale of zero to ten, how likely are you to recommend this company as a place to work?) but the respondent groups and NPS calculation remains the same as standard NPS.