Your customers already can praise or criticize your business across social media or online rating and review sites. So do you really need one more way to measure customer opinion? Yes.
The Net Promoter Score (NPS) is a simple but meaningful measure that can help any business quickly and efficiently calculate how well it's doing in its customers’ eyes.
What is the Net Promoter Score?
The concept of NPS originated in a Harvard Business Review article and was further refined by Bain & Company. All you have to do is ask customers: How likely are you to recommend our business to a friend or colleague? Customers respond on a 10-point scale, where 10 means “definitely likely” and zero means “not at all likely.”
The beauty of the NPS lies in its simplicity—who doesn’t have time to answer a one-question survey? Here’s how you analyze the results.
Those who respond with a 9 or 10 are “Promoters.” They’re loyal customers and advocates for your business.
Those who respond with a 7 or 8 are “Passives.” While they are currently satisfied, they could also be persuaded to switch to your competition.
Those who respond with a 6 or less are “Detractors.” At best, they consider your business “meh,” which means they aren’t likely to recommend it, and could openly criticize it.
In addition to scoring individual respondents, you’ll also need to figure out your NPS. To do this, calculate how many people responded, the total number of Promoters, and the total number of Detractors. Then subtract the percentage of Detractors from the Percentage of Promoters to arrive at your score.
If you have the same percentage of Detractors as you do Promoters, your score will be zero. Any score over zero is considered good; a score of 50 or higher is considered excellent. Scores of over 70 are considered world-class; at this level, you find companies like Apple and Amazon.
How to Do an NPS Survey
You can create your own NPS survey and tabulate the results manually, or you can save a lot of time by using apps designed to conduct NPS surveys. They help you automate when surveys are sent, collect and sort responses, and generate reports that let you track trends over time and spot changes that might be important indicators of customer sentiment. (For example, did your NPS score take a dive right after you raised the price of your service?) Delighted, AskNicely and YesInsights are three NPS solutions to consider.
NPS Survey Questions
To get the most out of an NPS survey, you must have insightful questions. It is better to start off with an easier, less intrusive question. For example, “How did you hear about us?” It is a great icebreaker because not only is it easy for the respondent to answer, but it also provides you with information on how customers hear about your business.
You’ll collect better information to help you improve if your NPS survey includes an open-ended follow-up question: What’s your most important reason for giving us that score? This gives customers room to either rave or rant about you. Both responses are useful. However, try not to include too many open-ended questions – two to three max.
Send an additional thank you email to the respondent after successful completion of the survey. For example, “Thank you for your time. Your opinion is very important to us and it will help us better serve you in the future.”
RELATED ARTICLE: Understanding Your Ideal Customer
How to Use Your NPS Score
Of course, the benchmark that really matters is whether your own score is improving over time.
Once you’ve gathered feedback:
- Reach out to Detractors and
- Reach out to Promoters to say thank you and ask if they’d be willing to write an online review for your business (send them the link), provide referrals or give you a testimonial profiled in a case study.
- Look for
The NPS score allows you to check-in with your customers, evaluate their feedback, and grow your business.
Rieva Lesonsky is CEO and Co-founder of GrowBiz Media, a custom content and media company focusing on small business and entrepreneurship, and the blog SmallBizDaily.com. A nationally known speaker and authority on entrepreneurship, Rieva has been covering America’s entrepreneurs for more than 30 years. Before co-founding GrowBiz Media, Lesonsky was the long-time Editorial Director of Entrepreneur Magazine. Lesonsky has appeared on hundreds of radio shows and numerous local and national television programs, including the Today Show, Good Morning America, CNN,The Martha Stewart Show and Oprah.Lesonsky regularly writes about small business for numerous websites and for corporations targeting entrepreneurs. Many organizations have recognized Lesonsky for her tireless devotion to helping entrepreneurs. She served on the Small Business Administration’s National Advisory Council for six years, was honored by the SBA as a Small Business Media Advocate and a Woman in Business Advocate, and received the prestigious Lou Campanelli award from SCORE. She is a long-time member of the Business Journalists Hall of Fame.
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