A management tool for measuring customer loyalty and increasing revenue.
Detractors are customers who’re unhappy with some element of your service and can spread negative word of mouth.
Passive customers are generally satisfied but aren’t motivated to promote your brand. They’re still at risk of defecting to a competitor.
Promoters are advocates for your organization, actively providing referrals. They are generally a sign of new and repeat purchases.
NPS surveys are used to measure customer loyalty and is done by asking a single question:
“On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?“.
This rating should be taken after a customer’s most recent interaction with you to measure their overall brand sentiment against that touch-point.
To calculate your Net Promoter Score, you must first discern the percentage total for each customer group (Detractors, Passives and Promoters).
Then subtract the percentage of Detractors from the percentage of Promoters. The number your’re left with is your NPS.
Once your NPS survey has collected enough results, you’ll have a score between -100 and +100.
Calculate an NPS score regularly to measure change over time. You should also benchmark against industry competitors for context.
Net Promoter, Net Promoter Score, Net Promoter System, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.