Is your organization looking for a simple way to measure customer loyalty and satisfaction? Are you trying to link employee compensation with performance? The Net Promoter Score (NPS) is a simple way to do both. It’s so easy, it’s nearly magical.
Your Net Promoter Score is based on one, simple question that you can ask all of your clients and customers:
“On a scale of 0 to 10, how likely is it that you would you recommend [My Company] to a friend or colleague?”
- Respondents who give you a 9 or 10 are your “Promoters.” You want lots of those.
- Respondents who give you a 7 or 8 are “Passives.” They’re not promoting you, but they’re not trash-talking you, either. They have no impact on your Net Promoter Score (NPS.)
- Respondents who give you 0-6 are “Detractors.” They count against you, because they can damage your firm’s reputation.
To calculate your NPS, simply take your percentage of Promoters and subtract your percentage of Detractors, as the following illustration shows:
(Source: NetPromoterScore.com)
Here’s an example from a webcast I recently did.
Within 24 hours of the webcast, we emailed all respondents with a link to the NPS survey. (Note to cheapskates: We designed the survey in SurveyMonkey. You can sign up for a free plan and survey 100 clients immediately.)
Here were my results:
- 40% gave me a 9 or 10
- 15% gave me a zero-6
My NPS for this webcast was: 25%.
Our firm goal is to have NPS’s in the 70% range, so either (a) I performed poorly, (b) I didn’t deliver on what was promised, or (c) 15% of our attendees had a bad day. Thankfully, I’ve got time to pick myself up, since my overall/annual webcast average has to be in the 70’s. (If you’d like to sign up for a webcast and give me a chance to redeem myself, browse our upcoming options here.)
Why is NPS so powerful?
In the words of Mr. Reichheld, “Companies with a better ratio of Promoters to Detractors tend to grow more rapidly than competitors.”
How does your NPS compare to some well-known brands?
Apple: 77%
Amazon.com: 74%
Google: 71%
Adobe: 46%
Vonage: 45%
Yahoo: 41%
Verizon Wireless: 40%
Charles Schwab: 36%
AT&T: 11%
Want more?
- You can buy pricey reports for certain market segments and geographies here.
- Learn more about how to calculate your score here .
- Buy the book, The Ultimate Question by Fred Reichheld
