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NPS or Net Promoter Score, measures customer satisfaction and loyalty. Often this score depends on 1 particular question, “How likely are you to recommend our products or services to family or friends? The answer to this question is usually between 0 (very unlikely) and 10 (very likely).
Based on their response, customers are divided into 3 groups:
- NPS promoters: score of 9-10.
- NPS passively satisfied: score of 7-8.
- NPS critics: score between 0-6
It does not necessarily require a large number of responses. The NPS can be perfectly applied for the smaller businesses.
What does Net Promoter Score mean?
NPS measures your customers’ willingness to recommend your products or services based on their experiences. You can learn from it how to improve customer service and numerous other aspects of your business. Here are some examples:
- NPS is 6 or lower: customer service begs to be improved.
- NPS of 7 or 8: Customer service is going well, although there are some points that could be improved.
- NPS of 9 or 10: keep up the good work!
What does an NPS look like?
An NPS has taken different forms over the years. For each company, this is different. This is what an NPS might look like:
Calculating your NPS
Calculating your NPS is actually quite simple. From your total number of voters take the percentage of the number of promoters and subtract the percentage of critics. So the passively satisfied are not part of the formula, but certainly do not underestimate the value of this group. They have a direct impact on both the percentage of promoters and that of critics.
Example:
After questioning, these are the results (100):
- 0-6: 20 votes
- 7-8: 50 votes
- 9-10: 30 votes
Calculation NPS:
30 – 20 =
10
But what is a good NPS? Well the NPS is always between +100 and -100. A good NPS score does not have to be 100. Above 0 is already a sufficient. If you are between 50 and 100, this itself means that you are doing well or even excellent. Often this depends from sector to sector.
Do you have any questions about this section? Measure your own NPS? We are happy to help you!
