Let’s talk about NPS
A Net Promoter Score (NPS) is a measure used to determine the strength or weakness of the customer relationship. Traditionally, Net Promoter Scores are considered a component of Customer Loyalty. A Net Promoter Score -NPS is all about how many of your customers would recommend you.
Net Promoter is based on a question asking the likelihood to recommend a product or service. A question called “Likely to Recommend” calculates the NPS. Although NPS is often considered an alternative to customer satisfaction, we prefer to use it in addition to other customer satisfaction and performance measures.
Using a Net Promoter Score
Perhaps you own a business or work for a company, consider how many of your customers would recommend you and why it might be helpful for you to know. Even as an individual, you can consider how many of your friends would recommend you as a friend or as an employee or colleague. This will give you a good idea of how a Net Promoter Score could give you actionable information.
Conversely, consider how many customers would not recommend you or your business. Or even worse, how many would advise against using your products or services. These customers are considered “Detractors.” It is very likely, given another alternative supplier, that these customers will not use your product or service again.
How to calculate NPS
Typically, you can calculate an NPS using a scale of 0-10. However, other marketing research companies use different scales. For example, with a 1-5 Likert scale using words as the anchors. Use an anchored Likert scale to illicit positive and negative responses. At Mindspot Research we often use 1-5 anchored Likert Scales (scales with five possible responses) to ensure consumers have a clear understanding of the scale. Also, this is a means to quickly communicate the choices for busy professionals in our Business-to-Business Surveys.
Here’s an example of a typical five-level Likert scale which measures the net promoter score:
If someone in a related business asked you for a supplier recommendation, how likely would you be to recommend them?
Might or might not
Probably will not
Definitely will not
We like our MindTrack Survey better
Many businesses will survey their customers on an annual basis. They aggregate the answers of the Net Promoter question to determine how many of their customers would recommend them to others. Some companies even link the NPS to revenue growth. Mindspot Research includes a Net Promoter metric in our MindTrack™ Business Assessment along with other critical metrics and we track this over time (usually on an annual basis).
Include additional questions in your survey design to aid in understanding perceptions of products or services. These additional questions help determine the relative importance of attributes and other performance metrics to the business. This is especially helpful because it identifies performance attributes that impact the Net Promoter Score.
A complete Net Promoter methodology also includes a process for retaining Net Promoters and improving the perceptions of Detractors or those with neutral perceptions. As an output of the Mindspot Research MindTrack™ Business Assessment we include our consultative recommendations for improving key performance outcomes.
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Lynnette Leathers is the CEO of Mindspot Research and today’s Survey Doctor.