Explores What Is the Net Promoter Score and Why Does It Matter?

April 28 09:30 2021 Explores What Is the Net Promoter Score and Why Does It Matter?

For consumer-facing businesses, data is the key to improving customer experiences and, consequently, a business’s bottom line. There are lots of metrics that pertain to customer experience. However, the net promoter score (NPS) has become a gold standard for measuring the effectiveness of customer experience programs. It is now used by over two-thirds of Fortune 1000 companies.

What Is an NPS?

NPS is a metric used to gauge customer experience, and according to, it’s the key to understanding customer loyalty. Scores are measured using simple surveys and reported on a scale of -100 to +100, with higher scores being more desirable. Although NPS surveys don’t ask customers directly about their personal experiences, the NPS is now considered a gold standard for understanding customer experiences and predicting growth.

The surveys consist of just one question that asks customers how likely it is they would recommend the company’s product or service to others. Survey respondents can rate their likelihood of recommending the company on a scale of one to ten, with zero being completely unlikely and ten being extremely likely. People who respond with a nine or ten are considered promoters since they’re usually loyal, enthusiastic customers.

Those who rate their likelihood of recommending the company or brand lower than a nine aren’t typically completely satisfied with their experiences. Customers who give the business a seven or eight are passive consumers who might be satisfied with their own experiences but are unlikely to promote the company actively to others. Those who respond with scores of zero to six have generally had poor experiences and are unlikely to become loyal customers. They may even discourage other people from patronizing the company.

How to Calculate NPS

Once marketers have obtained sufficient survey responses, it’s easy for them to calculate the company’s final NPS. They just break the respondents up into promoters, passives, and detractors, determine what percentage of them falls into each category, and subtract the percentage of detractors from the promoters. Passives do not impact the NPS. Business owners can also find additional Tips For Getting More Valuable Customer Feedback.

What NPS Can Measure

NPS is a surprisingly versatile metric. It can be used to measure not just overall customer experience, but also the popularity of individual stores, products, and even staff members. Check out this informative post for more ideas about how to implement this metric. 

How to Create an NPS Survey

NPS surveys are pretty straightforward and easy to create since they only have one question. Business owners can turn to companies like Qualtrics for free templates and help with long-term data analysis. They can also get help determining which questions and phrasings will be most likely to elicit useful information.

The NPS is considered the best metric for evaluating customer satisfaction for a reason. It’s much easier to solicit responses from a wider range of customers when using simple surveys than it is to conduct more complex market research. Once business owners have accurate data, they can take steps to improve customer experience, turning passives and even detractors into loyal promoters.

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