Net Promoter

Score

Net Promoter Scores.

A common way that organisations examine the health of their customer experience is via a metric called a Net Promoter Score or NPS.

The Net Promoter Score® (NPS) is an established method and you can often benchmark your NPS against the average score to see if you are performing better or worse than others in your sector.

 

How to calculate your Net Promoter Score is based on a single question (although pros ask more than one question, we will come to that later).

 

“On a scale of 0-10, how likely is it that you would recommend [company name] to your friends, family or business associates?”

 

Customers that give you a 6 or below are Detractors, a score of 7 or 8 are called Passives, and a 9 or 10 are Promoters.

 

Net promoter scales

To calculate your Net Promoter Score, subtract the percentage of Detractors from the percentage of Promoters. It is that simple. So, if 50% of respondents were Promoters and 10% were Detractors, your Net Promoter is a score of 40.

 

The importance of the Net Promoter Score is that it gives you insights into your customer loyalty spectrum. As you move up the scoring scale, from 0 to 10, customers defect at lower rates, will spend more and will move from negative word of mouth to positive.

 

NPS scores range from -100 to +100 and the higher the score the “better” you are.

 

By measuring customer loyalty you can identify customer experience weak points that need improving, but to do this, you need to know more than just a simple score.

 

You need to understand the reason behind the score with supplementary questions otherwise you really don’t know where to start if you intend to improve.

 

We know that most people leave or change purchasing decisions based on four key areas.

Problems with:

  • Price

  • Process

  • People

  • Products.

 

So when you do your NPS Survey creating a data pool of open ended questions such as which area could we work on to improve your score and capture free text.

 

Using good quality text analysis tools you can then create meaningful data as to which areas are causing the biggest headache for your customers and from this you can start to take some action.

 

Abacus Research uses powerful text and sentiment analysis tools to create meaning from lists of free text so give us a call if you really want to add power to your NPS data or would like us to run a one off or regular NPS survey for you.

Download the Service Guide to Customer Loyalty and Retention