We speak to so many people in the goods and services industry who know the importance of having a Net Promoter Score, but who are not sure why it’s so important or what it is exactly.
So, what is it exactly?
The Net Promoter Score measures customer loyalty with an index from -100 to 100, using a standard question. That question is usually, “On a scale of 0 to 10, how likely is it that you would recommend this business to friends and family?” It measures customer loyalty by sorting the answers into three categories: Promoters; Passives; and Detractors.
Net Promoter Score Customer Classification:
Promoters (9-10): are the customers who are loyal and enthusiastic about your brand and will promote it to others.
Passives (7-8): are satisfied customers, but not enthusiastic enough to promote you to others and are open to considering competitors.
Detractors (0-6): actively try to disparage your brand by spreading negative feedback to others.
No business is going to have a perfect score. Not even a not-for-profit company giving away free hugs will be free from detractors. Any positive score is good, +50 is excellent. Apple has a NPS of 72, that is considered extremely high for a company in the tech industry.
Why use it:
The beauty of the Net Promoter Score for businesses is that it is easy to understand and it is also very easy to communicate the score with your team; therefore, it can have immediate results that your team can act on, as well as long term benefits for sales growth. You can easily obtain your NPS through customer satisfaction surveys. You can also use the metric to assess competitor’s NPS to compare against your own.
If you want to assess your customer loyalty and identify your NPS, get in touch with us at Above Benchmark, we’re here to help! We do recommend a customer satisfaction survey so you can get insight into individual customers and the NPS data.
Above Benchmark – The Customer Service Experts