Measure NPS with Net Promoter Question

Use Net Promoter Score to measure Customer Loyalty

Now you have worked yourself through the introduction to Net Promoter Score, here comes an important part about the working of this system. At a basic level, it just comprises of four simple steps for the system to work smoothly

  • First of all, Net Promoter Question is asked to the clients.
  • Based on the replies of the asked question, the customers are categorized in three different pre-assigned categories.
  • Calculation of the Net Promoter Score is done.
  • Last but not the least is, Net Promoter Model is implemented.

NPS is a metric that asks just a single and a very simple question to every client, which is “How likely are you to recommend our company or business to your colleagues, friends or any other acquaintances?” Based on this question, consumers reply back by scoring from 0 to 10 on a scale. Then on the basis of the replies received, the respondents are reclassified as follows:

  • If the respondents have replied within the scores 1 – 6, they are labeled as “detractors”. They are categorized under non happy customers.
  • The ones who have given 7 or 8 scores on the scale, those are labeled as “Passives”. These customers are classified as neutrals.
  • Last but not the least are the ones who have rated your business or company with 9 or 10 scores, they are known as “Promoters”. They are classified as really happy customers.

However, there are a few consumers, who might even score you zero “0” on the scale, means an absolute “NO”. They are totally unsatisfied by the services or the products of your organization or brand.

Fred Reichheld mentions it as a free marketing tool with the help of which a company reaches to their clients and acts accordingly to improve and grow their business with the help of the feedbacks given through the Net Promoter System. This is an important survey to conduct in order to track and assure the satisfaction level of the customer.

In order to calculate Net promoter Score effectively it is initially required to get the percentage of respondents categorized under both detractors as well as promoters. Then the percentage of detractors is deducted from the percentage of promoters.

For example:
Let’s say if 100 clients have responded to the question asked for the survey.
Percentage of Promoters = 39%
Percentage of Detractors = 14%

Now calculate:
NPS = % of Promoters - % of Detractors
NPS = 39% - 14%
NPS = 25%

Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
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