Net Promoter Score Definition
Net Promoter Score is a single-question survey that answers the question about the probability of recommending a service or product to others. It is a simple alternative to complicated interviews and surveys, which are very often hard to conduct, as customers don’t want to spend much time replying to various questions, including those more personal. NPS usually asks directly how likely the customer will recommend the product, from 0 to 10, where 0 stands for “not likely at all” and 10 “very likely”. You may ask your customers about their impressions right after the purchase, or on a regular basis (annually, quarterly, etc.)
How to calculate NPS?
Based on the responses to the survey, customers are divided into three groups according to their involvement and sympathy for the brand:
- 0-6 – Detractors – people that are rather dissatisfied with a service, that may discourage others from buying your product in the future.
- 7-8 – Passives – usually happy enough with the service, but have some complaints and negative comments that may stop them from being brand promoters.
- 9-10 – Promoters – very happy with the product, real brand ambassadors that will spread the good word about your offer without any further invitation or incentive.
Once you have labeled all customers in the analyzed set, you can calculate the NPS by subtracting the percentage of Detractors from Promoters.
How to interpret the results of the NPS survey?
NPS is just an overall metric, and can’t be treated too literally. It can help you to monitor overall customer satisfaction and spot the possible danger of churn, but it needs additional analysis to arrive at more detailed conclusions. A good thing to do is to apply some segmentation to the NPS analysis, which may be a good base for building a retention marketing strategy. According to our global benchmark data, which accounts for the NPS of more than 150,000 organizations, the average score is +32.