What is your NPS (Net Promoter Score)?

If you want to know how you’re doing from your clients’ perspective, a great way to find out is through a survey at the end of the project or annually to ongoing clients. Having a survey gives your customers a voice. It can alert you of things that aren’t going well and help you capitalize on your strengths. You can also use the data to figure out your Net Promoter Score (NPS). NPS is a score of how loyal your customers are.

NPSThe question you need to ask is, “On a scale of 1-10, how likely are you to recommend our company to a friend or colleague?” From that question, you can calculate the NPS score for your company. Here is how it works. Scores fit into one of three categories:

  1. Promoters. They chose a 9 or 10 on that question. These are the people who are highly likely to tell others about you. They are the most loyal customers.
  2. Passives. They chose a 7 or 8 in answer to the question. Passives are satisfied with your business, but not delighted enough to open their mouths and tell others.
  3. Detractors. They chose anywhere from 0-6. They range from dissatisfied to slightly satisfied. Because of this, if they tell others, they are probably sharing a negative story about you.

The more promoters you have in your business, the more your business will grow organically from word of mouth referrals. To figure out your NPS, you find the percentage of each category – promoters, passives and detractors. Then you subtract the percent of detractors from the percent of promoters.

What does your NPS mean?

The number can range from a negative number to 100, if every client was a promoter. The aim should be in the 50% – 80% range. You can find standards for different industries. For example, the average NPS for internet service providers is a 2, but the average for hotels is 29. If you look up your industry, you can have a benchmark to aim for. More important, work to improve your NPS each year within your company.

Tracking and knowing your NPS gives you great insight into how your customers view your company. It helps you track loyalty and likelihood of referrals.

Have you ever calculated your NPS? Do you have clients give you feedback through a survey? Share in the comments below.

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