Net Promoter Score

Net Promoter Score is used to measure customer satisfaction and loyalty by asking customers about their experience and how likely they are to recommend your product to others on a scale of 0-10.

In the NPS system, the customers are divided into 3 categories i.e. Promoters, Detractors, and Passives depending on how likely they are to recommend your products.

Promoters- They have a score of 9 and 10 and are considered to be the most loyal customers. They help in the overall growth of the company by increasing the referral flows and improving the brand image.

Detractors- They have a score of 0 to 6. They are the customers who had a bad experience or those who are not likely to stick around and make repeat purchases.

Passives- They have a score of 7 and 8. They are the ones who have made a few referrals and with the right strategies can become very close to being promoters.

How to calculate?

You can calculate the Net Promoter Score by subtracting the percentage of Detractors from the percentage of Promoters. For example, if 60% of respondents were detractors and 40% were promoters, then your Net promoter Score will be 20.

Benefits of NPS

1. It provides a bigger picture- NPS helps to measure the likelihood of repeat and new customers, thereby helping to get an insight into the overall growth of the company and customer retention.
   

2. Relevant to everyone- Your business is like a chain where everyone starting from the front-line staff to the customer support, everyone is included. So, strong NPS and follow-up questions help in the better functioning of the chain. A good NPS also suggests that your team is also engaged with their work.
   

3. It gives scope for improvement- With the help of feedback from customers, you’ll be able to recognize the potential areas of improvement and work for a change that leads to better conversions in the long run.
   

4. User-friendly implementation- NPS surveys are straightforward and quick and can be done easily over the phone or by email within a few minutes.
   

5. Track change over time- You can carry out a month-to-month or year-to-year tracking of your customer experience. If you start a new seasonal trend, then you can take a survey after its completion to get an insight into how the recent changes have affected the customer experience.