question42

What is the NPS® Methodology?

Net Promoter Score® (NPS) is more than just another online customer satisfaction survey. It is a proven means for defining a common metric around customer satisfaction and gathering quality, actionable feedback that helps businesses grow, become more profitable, attract new clients and retain employees.

NPS classifies clients into “promoters,” “detractors” and “passive” customers through responses using a 0 to 10 scale. The survey starts with the simple question – how likely would you be to recommend the business in question – because research has shown this one question has the highest correlation with customers’ intent to repurchase.

The NPS Scoring System

  • Scores of 9 or 10 represent promoters. These are your loyal customers who will use your products and services over that of your competitors. They will tell others about positive experiences with your company’s products, services and support.
  • Scores of 7 or 8 represent indifference and a passive view of their customer experience. These customers may be satisfied, but they also represent an opportunity to improve loyalty and referrals. A satisfied customer may go elsewhere for a cheaper price or out of convenience, but a promoter will stay committed and sing your praises.
  • Detractors include anyone from 0 to 6. These are not simply dissatisfied customers. They can represent a real threat to future growth.

Your company’s overall Net Promoter Score is based on the percentage of customers giving a score of 9 or 10 minus the percentage of customers who gave the company a score of 6 or less. This simple metric becomes a Key Performance Indicator and provides an excellent benchmark against the competition and against your own business process improvement.

Identifying Customer Types is Part of the Net Promoter Process

It doesn’t stop there, however. The initial question can serve as a springboard for a more rigorous examination of customer satisfaction. In fact, each score represents an opportunity. Each response ties back to a specific individual or customer. Examining the underlying reason behind the score and developing effective solutions convert passives customer into promoters and limit the number of detractors.