NPS definition
NPS was first developed by Bain and Company in 2003. Millions of companies use the net promoter score to measure customer perception. Net promoter score is a simple metric that expresses the loyalty of your customers. Net Promoter Score measures the loyalty of your customers to your company with the simple question;
Your customers can answer this question with rating from 0-10. We place them into 3 distinct categories based on their responses. The categories are;
- Promoters: Enthusiastic and loyal customers that select the highest score of 9 or 10
- Passives: Lukewarm customers with no motivation to promote your business. They are simply ok people who will select a score of 7 or 8
- Detractors: Dissatisfied customers that are likely to discourage others from using your service. They will select a score from 0 to 6
NPS calculation
Net Promoter Score is expressed as a number. It has a range from -100 to +100. You have more detractors than promoters with a negative score. And, with a positive score, you would have less detractors than promoters.
You can calculate your score by subtracting the percentage of customers who answer the Net Promoter Score question with a 6 or lower (known as ‘detractors’) from the percentage of customers who answer with a 9 or 10 (known as ‘promoters’).
How to interpret your NPS score
You have your score now. What does this score mean for your business? NPS scores are considered as either good or bad. A bad NPS score may not mean trouble for you and your business. There needs to be a contextual interpretation of this score. If your industry has an NPS average score of -10 and your NPS is -6, you are far ahead. Depending on the industry benchmarks, you could be well above average. A good NPS score has positive figures. Top notch companies usually have a score of 70 and above. Realistically, this is not the case all the time. In 2018, Netflix had a Net Promoter Score of 64, PayPal scored 63, Amazon 54, Google 53, and Apple 49.
3 tips on how to read your results
- Conduct your survey across different segments of your business (product lines, demographics, consumer preference, etc.). This way, you can focus your energy and resources on the segments with the lowest scores
- Track your performance over time. The trends and fluctuations in your results can help you identify the influencing factors for the scores you get
- Close the loop. For every customer rating you receive, collect feedback from the customer to understand the context of that rating. Finding the ‘why’ will lead you to the solution
How to create an NPS survey
Net Promoter Score surveys are relatively easy to create. Remember I mentioned that they are simple one question surveys. Going old school with a paper form and a pen is clearly outdated. Try the new age way. Create your NPS surveys with RightSurvey. You can select the NPS template from our world-class and industry standard templates. Add your questions, save and share your survey. RightSurvey has diverse and flexible channels to share your surveys. Respondents simply launch the web link or scan the QR Code to fill the survey. With seamless integration with RightBot, they can also fill the surveys via Twitter, Facebook Messenger and WhatsApp. Get a summary of your responses, explore individual responses, view your charts and export your data in different formats. We calculate your NPS score in real time.
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