For businesses who like to know what their customers think about their company, the NPS Score is an important tool.
But, you may ask, “What is a NPS Score, and why is it important?”
In this article, we look at the NPS Score survey and how it can benefit your business.
What is the NPS Score?
NPS stands for Net Promoter Score. It measures customer satisfaction.
This score comes from the Net Promoter Survey, and it’s a really simple, one question survey.
All you do is ask your customers this question: “How likely are you on a scale of 0-10 to recommend our (name of business/products/services) to your friends, family, or colleagues?”
This is what your answers mean:
- Those who choose between 0-6 on the scale are called detractors.
- People who answer with a 7 or 8 are neutral or passive to your business.
- Respondents who choose a 9 or a 10 are your promoters.
To get your NPS Score, you subtract the percentage of detractors from the percentage of promoters, and you have your answer. You completely ignore those who answer with a seven or eight.
The higher your score, the better you did.
Why is it Important?
Overall, the Net Promoter Score is important to your business because it provides a big-picture look at your customer loyalty. (tweet this)
You can see how this separates you from the competition, and it helps you see where you can improve.
The NPS Score also shows you how specific departments in your company are doing so everyone is getting equally high scores.
Plus, if you use the NPS Score, and you use it as a key indicator of how well your company is doing, you’ll see it helps drive your business growth as you work to improve your score.
For example, if your first score is under eight, and you make a plan for improvement, you can resend the survey six months later and see if your score grows.
The NPS Score Works
We like the NPS for many reasons, one of which is that you can gauge company success by this score.
Those people rated as promoters (score of nine or ten) are much more likely to be repeat customers. You are in essence closing the funnel because you are locking in future business.
So, by aiming for a promoter rating, you are helping ensure your success.
In addition, we like the score because it lets you know if you can count on word of mouth.
Hands down, word of mouth referrals are the most important piece of your marketing strategy. Word of mouth is better than any marketing strategy you can come up with.
In our hyper-digital age, people want to know what others think. They even trust the word of strangers. So, the more promoters you have promoting your business, the better.
Because you value the NPS Score, you can work hard for your nine or ten score, and if you do, you’ll know that the referral is right around the corner.
Best practices are to track your NPS Score on a regular basis, compare the results over time, strategize for improvement and continue to evaluate the data.
The business environment is increasingly crowded, and it’s more important than ever before to not only get new customers but retain your current ones.
The best way to increase your business is to keep your customer base so happy that they’ll share how much they like you with friends and family.
The Net Promoter Score is the best gauge of customer satisfaction and one you can use to determine how content your customers are with your products and services.
Bottom line – the NPS helps you understand if your customers would recommend you to others. If your score is under eight, you’ve got some evaluating to do.
A low score means you need to have frank discussions about your products, customer service, and overall processes. Your goal is to get your score to nine or ten.
If your score is already a nine or ten, you still want to have a strategy session to make sure you carry on and provide for your customers, so they continue to sing your praises.
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