There's no doubt that word of mouth (positive and negative) is a big part of the reason that customer satisfaction links to business performance, and Net Promoter Score (NPS) taps into that mechanism. Here we look at a definition of NPS and how we can help your organisation measure it effectively.
What is NPS?
NPS or Net Promoter Score is a customer experience metric that organisations use to measure how they are perceived by their customers and whether they would recommend them to others.
Measuring NPS is based around a question similar to this one:
How likely would you be to recommend [Organisation A/Product B/Service C] to a [friend/family member/colleague]?
Respondents give a rating on scale of 1 (very unlikely) to 10 (very likely) and depending on their response fall into 1 of 3 categories: 9 & 10 = Promoters, 7 & 8 = Passives and 1-6 = Detractors.
To calculate your final NPS score, simply subtract the percentage of Detractors from the percentage of Promoters. For example, if 10% of respondents are Detractors, 25% are Passives and 65% are Promoters, your NPS score would be 65-10 = 55.
Uses for NPS
NPS can be used to your organisation as a whole, a particular product or service, or even different stores or an individual staff member.
NPS gives an overall indicator of performance, which you can then use to track and monitor improvements against.
However, with so many factors affecting your Net Promoter Score, it’s much more important to understand what’s driving the score. This is where further customer research and feedback is needed and analysed alongside your NPS.
How can we help?
If you’re organisation is looking to start measuring NPS for the first time we can help you understand whether NPS is the right measure and drive business improvement with an effective NPS survey.
We can create you a tailored NPS survey that tracks performance. We’ll also help you to identify the main drivers of Promotion and Detraction, and highlight the impact on business performance.
If you’re already measuring NPS, we can help you get the most out of your NPS research. We’ll assess what you doing now and identify areas where you can improve, from questionnaire content and design, through to survey collection methods and analysis.
If you would like more information on NPS Surveys please complete the short form on our Contact Us page and a member of the TLF Research team will get back to you.
We also offer a free questionnaire review from one of our research experts. Simply email us at email@example.com, explain a little about your organisation, what research your undertaking and attach your questionnaire.