Net Promoter Score®, or NPS®, measures customer experience and predicts business growth. This universal metric has transformed business and provides an essential measurement for customer experience management programs.
NPS is calculated using customer answers to key question, using a 0-10 scale. For example, a key question may be “how likely are you to recommend MAP Business to Business Marketing to a business colleague?”
Then respondents are grouped as follows:
- Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer to other businesses.
- 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 your business through negative word-of-mouth.
If you subtract the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score (NPS) that can range from as low as zero to as high as 100%. If you survey 100 customers and calculate that 20% were detractors and only 80% were promoters, your NPS would be 60 and this can form the bases of future measurements.
Net NPS is easy to understand by staff and customers, inexpensive to install, measures the likelihood of repeat business, the health of your brand, current customer satisfaction and satisfaction over time. It is a leading indicator of business growth and easy to benchmark against competitors. Hubspot provides free calculators for a variety of customer experience scores.
Enquiries
Maria Charlton
maria@mapmarketing.com.au