The Net Promoter Score (NPS) is the leading customer feedback metric that was incorporated by the leading management-consulting firm Bain & Company. It is used to measure the loyalty of your customers and employees towards your brand, company, product or service.
Net Promoter Score is measured from the simple NPS question “How likely would you be to recommend [YOUR COMPANY/PRODUCT/SERVICE] to a friend?”. This is rated on a scale of 0-10.
Based on their responses, customers will be segregated into 3 categories:
Detractors are those that rate between 0 to 6 on the NPS question and are likely to be disloyal to the brand.
Passives are those that rate 7 or 8 on the NPS question and are said to be neither loyal or disloyal to the brand and company.
Promoters are loyal customers who rate 9 or 10 on the NPS question. They are said to promote the brand to others.
In an NPS question, customers rate their willingness to recommend you on a scale of 0-10. The Net Promoter Score calculated based on the rating ranges from -100 to 100. The Net Promoter Score is not a percentage.
The Net Promoter Score Survey Flow
To understand the flow of the Net Promoter Score survey, you need to know the two important parts of the NPS survey questions as asking the right questions always gives you the right data.
Net Promoter Score Survey Question — “How likely would you be to recommend [YOUR COMPANY/PRODUCT/SERVICE] to a friend?”
Follow-Up Questions — Follow-Up questions refer to the asking reasoning behind the score. This reasoning gives you more actionable data to determine what is working and what is not working in your company.
Why is Net Promoter Score so Popular?
The Net Promoter Score (NPS) feedback from your customers (detractors, passives, and promoters) provides sharp insights to analyze and improve your products, services, and the user experience of your customers. Another important factor that promotes the employment of the NPS metric is to identify your detractors (unhappy customers).
Ignoring detractors can put your business at serious risk. In ‘The Ultimate Question’ book, Reichheld reported that 80% of the Negative Word of Mouth comments came from those who responded from detractors. NPS score is not merely a data, it is a key to drive change throughout the business and turn detractors to promoters if you effectively analyze it and close the feedback loop.