NET PROMOTER SCORE
WHAT IS IT?
The Net Promoter Score (NPS) is a measurement for customer satisfaction and customer loyalty.
NPS is an indicator of customer’s willingness to recommend an organisation to others, usually colleagues or friends.
HOW IS IT CALCULATED?
Customer Satisfaction UK calculate Net Promoter Score by asking customers a key question:
“On a scale of 0 to 10, how likely is it that you would recommend […insert client company here…] to a colleague or friend?”
Respondents are grouped as follows according to the Net Promoter Index (NPI):
- Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fuelling growth.
- Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
- Detractors (score 0-6) are unhappy customers who can damage a brand and impede growth through their disloyalty and negative referrals.
Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).
HOW TO USE IT?
Customer Satisfaction UK use NPS in the majority of our work as we believe it provides useful insights into customer perceptions.
We advise clients to view their NPS as one individual element in their extensive customer satisfaction programmes; to rely on NPS in isolation as the definitive representation of customer satisfaction is always a mistake.
Always aiming to add value, CSUK often provide supporting qualitative questions to the NPS question in their surveys:
E.g. “What is your main reason for giving this score?” “Is there anything […company…] could do to improve this score?”
The Net Promoter Score is an extremely useful metric, when taken as part of a comprehensive, holistic customer satisfaction programme.
To find out your NPS and how it can help you improve your business, call Customer Satisfaction UK today on +44 (0)1332 845845 .