It's a simple question that can tell you a lot about your customers and your business. "How likely are you to recommend our business to a friend or colleague?" This is the essence of the Net Promoter Score (NPS) survey, a methodology that measures customer sentiment.
Pioneered by Fred Reichheld, author of The Ultimate Question, and popularized by SatMetrix, the Net Promoter Score (NPS) predicts the likelihood of a customer repurchasing from you or referring business to your company. The Net Promoter survey is not a replacement for traditional customer satisfaction surveys and simply measuring NPS does not mean that you will create a successful business. It is, however, a great place to start by measuring customer loyalty and will help you learn how to improve customer programs.
Net Promoter Score surveys put your customers into 3 groups known as "Promoters," "Passives," and "Detractors," and challenges your business to improve the number of promoters while decreasing the number of detractors. So if your business goal is to delight your customers, measuring the Net Promoter Score is a great place to start
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The Net Promoter Score (NPS) methodology is based on asking customers a single question that is predictive of both repurchase and referral: "On a scale of zero to 10, how likely are you to refer our business to a friend or colleague?" The survey responses provided are classified as follows:
People who rate you 0 through 6 are known as "Detractors", those who rate you 7 or 8 are known as "Passives", and those who give you a 9 or 10 are known as "Promoters", as illustrated here:
The final Net Promoter Score (NPS) is calculated by subtracting the percentage of respondents that are labeled "Detractors" from the percentage of respondents that are labeled "Promoters". So NPS equals the percent of promoters minus percent of detractors. The final value can range anywhere between -100 to 100.The great thing is that, with GetFeedback, you don't even need to mess around with spreadsheets to calculate your Net Promoter Score. The GetFeedback summary report automatically calculates your Net Promoter Score and displays it with a visual histogram, as shown here:
How is the actual Net Promoter Score calculated? Let's take the example above: If you received 100 responses to your Net Promoter Score survey and they had the following distribution:
5 responses were in the 0 - 6 range (Detractors)
40 responses were in the 7 - 8 range (Passives)
55 responses were in the 9 - 10 range (Promoters)
The Net Promoter Score is is calculated as the percentage of promoters minus the percentage of detractors. In this example subtract 5% (Detractors) from 55% (Promoters) which equals 50%. Since a Net Promoter Score is always shown as just a number, and not a percentage, your NPS is simply 50.
The standard Net Promoter Score survey template allows you to customize the question text to fit your exact needs and include optional branding, imagery and survey/question logic.
By far the greatest advantage to the NPS survey is its simplicity and ease of use. You can get started surveying your customers with our Net Promoter Score question type and survey template in minutes, we'll even calculate the NPS score for you right inside the application.
What's also great is that the Net Promoter Score provides an easy-to understand metric that everyone at your company can understand. What's our NPS? How did it change from this time last month, or last year? How does it compare to others in the industry? NPS is a great place to start.
The NPS methodology is not without its disadvantages. The most important of which is that NPS does not provide a complete view of customer satisfaction, nor does it identify specific areas where your business needs to improve.
The context in which NPS is asked will also potentially bias the results. For example, imagine surveying only those who had problems with your products, your NPS score will be lower than surveying your entire customer base. Therefore, our recommendation is to use NPS in conjunction with a more broad customer satisfaction survey program.
With GetFeedback for Salesforce, you can map Net Promoter Score survey responses directly into Salesforce to run analytics, segment your customers, and better understand overall sentiment.
See why the world's leading brands use GetFeedback to understand and improve their customer experience.