Net Promoter Score (NPS)
Net Promoter Score (NPS) refers to the percentage of your customers who are willing to recommend your company. It’s based on a survey that asks respondents, “On a scale of 0-10, how likely are you to recommend {COMPANY} to a friend or colleague?”
How to calculate your Net Promoter Score:
[ (#) promoters – (#) detractors ] / (#) total respondents X 100 = (#) NPS Score
Responses are grouped as follows:
• 9 or 10 = Promoter
• 7 or 8 = Passive
• 0 – 6 = Detractor
The way you calculate your NPS is by subtracting the number of detractors from the number of promoters, then dividing that number by the total number of responses received and multiplying 100. NPS score can range from -100 to 100.
What we like about Net Promoter Score:
Promoters—those who selected 9 or 10—are the most likely to spread positive worth of mouth, recommend your services, and purchase again and again. This means immediately after completing the survey, you should ask Promoters to leave you a review OR refer your company to their family and friends. Doing so will increase your Viral Coefficient growth rate.
Passives—those who selected 7 or 8—are satisfied but unenthusiastic about your business. They’ll probably continue paying for your services, but there’s a risk of them canceling if a better deal comes along. So what you’re going to want to do with these people is strengthen your offering (coupon with % off their next service) and exceed their expectations when you deliver it. This will help you connect with Passives and turn them into Promoters.
Detractors—those who selected a number between 0 and 6—are dissatisfied customers. You must address this segment because they bring your sales and profits down. To turn Detractors into Promoters, you should ask for feedback and make it easy to leave a response. When you receive these messages, don’t get defensive. Instead, respond quickly and show empathy. This will help you improve your business in the long run. And if you want to make unhappy customers feel extra special, offer them a free service to make things right.
What we DON’T like about Net Promoter Score:
There is a big dependency on customers actually completing your Net Promoter Score survey. Luckily, GorillaDesk can help! Inside your GorillaDesk account, you have the option to automatically send NPS Survey emails to your customers after you complete a job. This allows you to break respondents down by Promoter, Passive, or Detractor, which allows you to follow up with anyone who is dissatisfied or unenthusiastic. And for those who are happy with the service they’ve received, you can automatically send them to your desired review platform.
Marketing metrics similar to Net Promoter Score:
Before you select Net Promoter Score as your One Metric That Matters (OMTM), be sure to check out these related marketing metrics and KPIs for context.
• Customer Lifetime Value
• Customer Churn Rate
• Viral Coefficient
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