Understanding the Net Promoter Score
What if one question could help your business understand and quantify how well you are servicing your customers? Well, it can.
By asking your customers how likely they are to refer you to a friend or colleague you can establish your Net Promoter Score (NPS) and bring statistical evaluation to your business growth.
Customers respond on a 0 to 10 point scale for how likely they are to recommend you someone and their responses help form your Net Promoter Score. To calculate your company’s NPS, take the percentage of customers who are Promoters (rate you 9 or 10) and subtract the percentage who are Detractors (rate you 6 or below).
Responses are categorized into 3 types:
Promoters rate you a 9 or 10 and are happy, loyal customers that will keep doing business with you and refer you to others. They provide and fuel growth for your business.
Passives rate you a 7 or 8 and are satisfied customers but less likely to refer you and more likely to be swayed to another business if reached with the right offer or message.
Detractors rate you at a 6 or lower and are unsatisfied customers that can damage your brand and business with negative word-of-mouth and even negative online reviews.
By utilizing Growing Reviews and understanding your Net Promoter Score your business can work on the following:
Establishing a tangible understanding of customer satisfaction
Champion your “promoters” and encourage them to share their experience via online review sites and win you more business
Identify what contributed to a “passive” experience and work to improve or enhance your customer experience to create more “promoters”.
Capture “detractors” and provide you the opportunity to listen and act on changing their opinion, especially before they share a negative opinion or negative online review.