What Does Your Net Promoter Score Say about You?

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Back in 2003, a man by the name of Fred Reichheld, one of the partners at Bain & Company, decided to come up with a way to measure customer loyalty and their willingness to recommend a brand, service, or product to their peers. The result was the Net Promoter System, or NPS, and it is now used by thousands of companies around the world. Your NPS score can tell you a lot about your company, too.

One Simple Question

In order for NPS to determine your score, customers are asked one very direct question: “How likely is it that you would recommend our company, loyaltyproduct, or service to a friend or colleague?” Then, those surveyed provide an answer on a scale of one to 10. Those on the lower end of the scale represent unhappy customers who would not provide a recommendation, and those at the high end of the scale are happy customers who can fuel your business’s overall growth over time.

Detractors, Passives, and Promotors

Now that you understand how the Net Promotor score works, it is simpler to figure out how your customer’s overall feelings about your company could impact your success. People who answer the survey can be classified into three different groups:

  • Detractors (score of 0 to 6) – These individuals may actually detract from your business with negative word-of-mouth. If someone replies with a number of 0 to 6, it is important to resolve his or her issue quickly in order to maintain that business.
  • Passives (score of 7 or 8) – The passives are the individuals who neither grow your business nor take away from it. They are satisfied customers, but they are indifferent and may be easily swayed by competitors.
  • Promoters (score of 9 or 10) – These are the individuals that your business has truly pleased. They are your most loyal customers and fans, and they will help your business grow with their repeat business, referrals, and positive attitude toward your brand.

Reading Your Net Promoter Score

The actual Net Promoter score ranges from -100 (everyone is a detractor) to 100 (everyone is a promoter). For the most part, if you have an NPS score that is above zero, you are moving in the right direction. Once that number hits the 50 mark, this is considered excellent. To calculate your score, you’ll simply subtract the percentage of detractors from the percentage of promoters. For example, if 50% of your respondents are promotors, 30% are passives, and 20% are detractors, this gives you an NPS score of 30 (50 – 20), which is good, but still not quite excellent.

If your business is not using a solid metric to measure customer or client loyalty, you should certainly consider integrating one. The NPS is one of the best and most trusted ways to shine a light on how your customer base really feels about your company. The information you glean from these surveys will provide you with valuable insight into driving customer loyalty and satisfaction.

What Does Your Net Promoter Score Say about You?
Article Name
What Does Your Net Promoter Score Say about You?
Your net promoter score tells you how your customers feel about your company and measures not only their loyalty, but also their willingness to recommend.
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Enlightenment Media
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