What is Net Promotor Score (NPS) and why should you use this to measure customer satisfaction?

NPS is a growing methodology for measuring the satisfaction of your customers, by assessing their likelihood to recommend through a simple graded question: 'Based on your experience how likely would you be to recommend to family or friends'
 
 
Dec. 18, 2012 - PRLog -- NPS is a growing methodology for measuring the satisfaction of your customers, by assessing their likelihood to recommend through a simple graded question:
'Based on your experience how likely would you be to recommend to family or friends'

Customers are asked to provide a score from 0 (highly unlikely) to 10 (highly likely).

Customers who score:

9 or 10 are ‘Promotors’

7 or 8 are ‘Passives’

0 to 6 are ‘Detractors’

The NPS score is calculated by subtracting the % of detractors from the % of promotors (passives are ignored).

Here’s a simple illustration:

If 63% of your customers score 9 or 10 (promotors), 22% score 7 or 8 (passives) and 15% score 0 to 6 (detractors) your NPS = 63% - 15% = 48%

So… what is a good score?

It must be remembered that because detractors are deducted, this makes getting a higher score much more challenging. Organisations that are used to getting satisfaction ratings in the high 80s will get a shock; a score over 60% is recognised as excellent.

This is where NPS really adds value, because it is so widely adopted in this prescriptive format, there are many organisational and industry benchmark levels to compare your performance against.

NPS is not right for all circumstances

Some organisations use NPS for too many different elements of the customer experience, trying to benchmark between them. For example, customers wouldn't often consider recommending a functional transaction. In these situations other methodologies such as Customer Effort Score may be more suitable (don’t worry, we will tell you all about this soon in our blog!)

Contact Us

If you would like to know more information about how NPS customer research can work effectively within your organisation, please email us at info@performanceinpeople.co.uk (mailto:info@performanceinpeople.co.uk) or telephone 01983 610061.
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