Service of the Month - Net Promoter Score
Thursday, April 5, 2018
Are your customers happy with your service?
Net Promoter Score (NPS) is both a loyalty metric and a methodology to increase revenue. NPS places a company's customers into three categories: Promoters, Passives and Detractors. This helps measure a clients' likelihood to recommend you to others. The question asked to determine loyalty was: On a scale of 1-10, how likely is it that you would recommend this company/product/service to a friend or colleague?
NPS scored can range from -100 (all detractors) to +100 (all promoters). Scores that are 0-50 are considered good and numbers above 50 are considered excellent.. Clients are asked to rate this on a 0-10 point scale with 0 being "Definitely would NOT recommend" and 10 being "Definitely Would Recommend". Based on the rating selected, respondents are placed into the three categories:
Based on the rating selected, respondents are placed into 3 categories:
- Promoter (9-10) Loyal enthusiast who will keep doing business with you and are more likely to refer others to your business, ultimately fueling growth
- Passives (7-8) Satisfied, but unenthusiastic clients who are vulnerable to competition.
- Detractors (0-6) Unhappy customers who can damage a brand and impede growth through negative word of mouth.
The longer you company can retain its customers, the greater the value of each customer you acquire. The key to retaining customers is extremely simple; deliver value, and provide a great experience that makes customers want to stay with you and recommend you.
By far the most effective way to measure customer satisfaction and loyalty is by the NPS, noting it's one of the most important growth metrics most startups and companies never bother to track.
By identifying and measuring NPS, your customers will identify opportunities for improvement and help prioritize company initiatives.
Please reach out if you have any questions!