Net Promoter Score (NPS) has become a global standard for organizations to measure and understand their customer/member experience. At its core, it’s a loyalty metric that is easy to collect, easy to calculate and easy to interpret.

THE QUESTION

“How likely are you to recommend us to a friend or colleague?”

This is the basic NPS question. Deceptively simple, yet skillfully designed to determine overall customer sentiment.

Respondents rank their likelihood on a scale of 0-10 with 0 being highly unlikely and 10 being extremely likely. NPS groups them into three categories:

1. Promoters: Those that respond with a 9 or 10 are your brand advocates. They are loyal. They are enthusiastic. And most importantly, they will vouch for you.

2. Passives: Those that respond with a 7 or 8 are neutral; neither loyal nor disloyal. They will not tarnish your reputation, but they won’t sing your praises either. And most importantly, if a better offer comes their way…they just might take it.

3. Detractors: Those that respond with a 0-6 are dissatisfied. They might even be angry. They are likely to walk away from their relationship with you. And most importantly, they can damage your business through negative word-of-mouth.

You can find even more detail about respondent types here.

THE SCORE

Calculating your NPS score is simple.

% of Promoters - % of Detractors = NPS

NPS gauges loyalty and intent. Its data is forward-looking. That’s why it has become a leading indicator of future growth.

THE VALUE

NPS is the voice of your customer/member. If you listen, you can easily create a plan of action to:

-       Engage promoters further

-       Tip passives in your direction

-       Pinpoint and correct issues affecting detractors  

NPS puts actionable intelligence into your hands. All you have to do is…take action.

THE IMPLICATIONS

Today, with endless options and everything at our fingertips, a quality customer/member experience is what will set you apart from your competition. And that experience is shaped by each and every touch-point – from marketing to customer service to events to word-of-mouth. So, collect data regularly with the intent to drive improvements. After all, don’t they say… happy customers are the best advertising money can’t buy?