Companies that nurture customer loyalty are often rewarded with customers that engage in behaviors directly linked to profit, such as reduced churn, increased share-of-wallet, and more referrals. A strong indicator of customer behavior, the Net Promoter Score methodology is a powerful system for aligning your entire organization around the important activities that promote a customer-centric culture.
Net Promoter is more than a score - it’s an operational discipline. That’s why we work closely with your team and go beyond “the ultimate question” to pinpoint and prioritize service enhancements that will have the greatest impact on customer satisfaction. This ensures that you remain well-informed on precisely what improvements your customers will value most, and the voice-of-the-customer can be infused into important strategic decisions. The payoff is customer experience excellence - one of the few sustainable competitive advantages.
What is the Net Promoter System?
Both a customer loyalty metric and organizational discipline, Net Promoter Score (NPS) is a widely used customer loyalty measurement tool to monitor customers' enthusiasm about the products and services you deliver. With good reason - Net Promoter Score helps you quickly pinpoint and eliminate organizational trouble spots to transform the customer experience while leveraging loyal enthusiasts to fuel growth. The Net Promoter discipline inspires employees around customer-centric behaviors, resulting in more profitable customer engagements.
At its core, Net Promoter Score is a culture-shaping tool. The Net Promoter methodology helps you identify profitable behaviors by understanding the service and product attributes that influence customer loyalty – leading to long-term sustainable growth. In addition to being a strong indicator of company performance, NPS score is easy to understand, simple to execute, and easy to communicate; something your entire team can rally behind.
NPS Survey Question & Calculation
How likely are you to recommend our company to a friend or colleague?
The Net Promoter Score calculation is based on the responses to a single question: "How likely are you to recommend our company to a friend or colleague?" On a scale from zero to 10, customers who score a 9 or 10 are considered your loyalty enthusiasts or "Promoters". Satisfied but unenthusiastic clients or "Passives" score a 7 or 8, and unhappy clients or "Detractors" score between 0 and 6. The Net Promoter Score calculation is simple - it’s the percentage of Promoters minus the percentage of Detractors.
Why Net Promoter Is Important
Created by Fred Reichheld, Bain and Satmetrix, research shows that the “likely to recommend” NPS question had the strongest statistical correlation with repeat purchases and referrals. Leveraging NPS to ensure you keep your finger on the pulse of customer sentiment allows for a deeper understanding of which customers exhibit these profitable behaviors and which, due to persistent frustration, may damage your company's reputation through negative word-of-mouth. Systematic assessments of customer attitudes provide the insights needed to properly address customer pain-points and demonstrate a commitment to continuous improvement.