Understanding the Net Promoter Score – NPS

What if one question could help your business understand and quantify how well you are servicing your customers?  Well, it can.

By asking your customers how likely they are to refer you to a friend or colleague you can establish your Net Promoter Score (NPS), developed by Satmetrix, and bring statistical evaluation to your business growth. (See this excellent article on HBR for more about Net Promoter Score.) Stop guessing on how customers feel about your product or service and develop a business data point to evaluate your success, weakness and opportunity for growth.


How NPS Is Determined

Customers respond on a 0 to 10 point scale for how likely they are to recommend you to someone and their responses help form your Net Promoter Score.  To calculate your company’s NPS, take the percentage of customers who are Promoters (rate you 9 or 10) and subtract the percentage who are Detractors (rate you 6 or below).

Responses are categorized into 3 types:

Promoters rate you a 9 or 10 and are happy, loyal customers that will keep doing business with you and refer you to others.  They provide and fuel growth for your business.

Passives rate you a 7 or 8 and are satisfied customers but less likely to refer you and more likely to be swayed to another business if reached with the right offer or message.

Detractors rate you at a 6 or lower and are unsatisfied customers that can damage your brand and business with negative word-of-mouth and even negative online reviews.

Net Promoter Score scale

Build A Better Business With Net Promoter Score

By utilizing GetFiveStars and understanding your Net Promoter Score your business can work on the following:

• Establishing a tangible understanding and data point of customer satisfaction

• Champion your “promoters” and encourage them to share their experience via social media, testimonials on your website and online review sites to win you more business

• Identify what contributed to a “passive” experience and work to improve or enhance your customer experience to create more “promoters”.

• Capture “detractors” and provide you the opportunity to listen and act on changing their opinion, especially before they share a negative opinion or negative online review.

More Than Just A Score

While capturing and understanding your NPS is the right first step, it’s important your business grows to drive improvements and changes that can help it succeed.  Net Promoter programs are a more complex and beneficial customer satisfaction program.  More and more companies of all sizes, from Fortune 500 to small businesses, are leveraging Net Promoter Scores as part of their company culture and customer service.

Get started by using GetFiveStars to understand your company’s Net Promoter Score.