What Are NPS Measurements?
An NPS® measurement, or Net Promoter Scale® measurement, is a metric and form of marketing research that businesses use to gauge their overall customer experience compared to industry averages. In conjunction with Fred Reichheld, Bain & Company created the Net Promoter Scale to measure customer loyalty, satisfaction, and your brand’s potential for growth.
The scale does so by asking each user a single question: “How likely is it that you would recommend [Company/Product/Service] to a friend or colleague?” Customers respond to the question with a rating between zero (not likely) and 10 (very likely). Based on their response, customers fall into one of three categories, which indicate your company’s NPS score:
- Promoters: Promoters are customers who respond with an NPS score of 9 or 10. Based on the data, they are typically loyal, engaged, and satisfied customers.
- Passives: Passives provide a score of 7 to 8. These customers are usually satisfied with their experience and a brand’s products or services. However, they are not active promoters.
- Detractors: Detractors are unsatisfied customers who respond with a score between 0 and 6. Detractors are unlikely to make another purchase and may share their negative customer experience with their friends and family.
How to Calculate NPS Measurements
You can easily calculate your business’s NPS score. To do so, you must gather all of your NPS survey data from your customer relationship management (CRM) platform. Then, use the following equation to determine your NPS score:
Percentage of Promoters – Percentage of Detractors = NPS Score
For example, if 7% of your company’s customers are detractors, 30% are passives, and 63% are promoters, your NPS score would be 63% – 7% = 56.
Common Questions About the Role of NPS Measurement in Customer Service
What are the three NPS categories?
The Net Promoter Scale features three categories: Promoter, Passive, or Detractor. The categories describe how satisfied and loyal each shopper feels about a brand, product, or service.
Are NPS metrics valid?
Generally speaking, you shouldn’t use Net Promoter Scores as your only measurement of customer satisfaction. Nevertheless, NPS measurements can help you pinpoint where your customer service offerings and overall customer experience fall short.
As a result, you can develop strategies to improve customer experience, train customer service agents to boost satisfaction and focus on nurturing a loyal customer base.
How do you measure NPS?
You can measure your Net Promoter Score by subtracting the percentage of detracting customers (those who provide a score between 0 and 6) from the percentage of promoting customers (those who rate their experience at a 9 or 10).
How can I improve my NPS score?
Improving your NPS score requires an organizational commitment to extraordinary customer satisfaction. That said, some effective methods include:
- Listening to customer feedback
- Sparking brand loyalty by offering incentives and rewards
- Learning where you can improve your support offerings