Net Promoter Score: What it is and why we do it
NPS stands for Net Promoter Score and is a metric commonly used by businesses and agencies (like us) to measure customer satisfaction
How is a business' Net Promoter Score calculated?
NPS scores are measured with a single question survey ‘How likely would you be to recommend [company name] to a friend or colleague?’ You’re then presented with a scale from 0 to 10.
- Detractors – If you give a 0-6 rating you’re known as a detractor This tells the company that you’re unhappy with their services and would readily tell people not to purchase from them.
- Passives – If you leave a 7 or 8 this suggests you’re satisfied with the company but not happy enough to readily recommend them to everyone you meet.
- Promoters – If you give a company a 9 or 10 this means you’re typically very happy with the service you receive, you’re very loyal and would enthusiastically recommend them to others.
Once the results are in, a company will subtract the percentage of detractors from the percentage of promoters giving them a final score out of 100.
Net Promoter Score = % Promoters – % Detractors
Why is it important to businesses?
Many businesses, like Reflect Digital, introduce the NPS programme because they want to use the scores and feedback to improve their services. NPS rankings provide insights into how loyal and happy a customer base is, these insights can be used to make data-led decisions to improve the customer experience the overall rating.
Reflect Digital
call: 01622 728800
website: www.reflectdigital.co.uk
This article was originally published by Reflect Digital on 18th January 2022. The original blog can be found here.