Why NPS Scores and Feedback Should Matter

08 Apr 2018

Category: Educational

What Is a Net Promoter Score and Why Does it Matter?

Net Promoter Score is a survey designed to determine customer sentiment. NPS scores range from 1 to 10. 10 being the best, 1 having lots of room for improvement. The survey tests brand loyalty, and how likely customers are to recommend your services or business to a friend, family member or colleague. The questions asked in the survey ask whether the company in question provided a good service. If not, how could they improve? NPS is a simple survey but can provide broad insight on a business.

One of the primary reasons for customers taking an NPS survey is the opportunity for feedback. Customers can give employees valuable feedback and drive important improvements within a business. The survey may be short, but the metrics it provides are proven to measure customer loyalty. Calculating your NPS score is actually based on one question from the survey. Here’s how to calculate that score.

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

Based on their rating, customers are then classified into 3 categories: detractors, passives and promoters. 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.

NPS score

To determine your official NPS score, take the percentage of promoters (nines and 10s) and subtract the percentage of detractors (sixes and lower). That number is your Net Promoter Score.

By calculating your NPS, you can identify key areas of customer loyalty that need working on. The score alone only tells you how you are performing and not why. However, the reasons provided with the survey are what is important to your business. The feedback can help your business increase promoters, and decrease detractors. Eventually, listening to the feedback and taking in your NPS, you should be able to eliminate detractors completely.

Bruce Temkin, customer service expert says, “By focusing on what causes promoters, you will get the opportunity to engage the organisation in uplifting discussions, instead of just beating the drum about what’s broken.”

Use the chance of an NPS survey to monitor relationships. When people recommend you, they are recommending you based on their entire experience with your business. Rather than your most recent transaction/experience alone. This is why it’s so vital to ask NPS questions at the right time. Even if a customer is loyal, if their most recent interaction with your company wasn’t positive, this will affect the answers they give to the NPS survey. If NPS questions are asked at the wrong time, the customer’s answers may not reflect their overall sentiment.

If you manage a team, introducing an NPS survey could be a good move for your business. Learn from it, and build on the responses. Remember, the NPS score is for teams, not individuals. So, ensure that the whole team works to improve. Using the score, test your customer loyalty. Work to provide the best customer service you and your team can!