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.
“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.
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.
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.
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?