Net Promoter Score

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Net Promoter Score ™

Uncovering information that has the power
.....to connect corporations with their customers.

Net Promoter Score ™ – NPS^® Measurement

While many companies claim to have a good idea of overall customer loyalty, most only employ very basic and informal tactics, such as evaluating unsolicited customer feedback. Businesses relying solely on unsolicited feedback to assess customers’ loyalty, likely are not getting information they need.

Our customer loyalty phone surveys often use the concept of Net Promoter Score as a baseline measurement of overall customer loyalty. The concept of a Net Promoter Score– or NPS - was developed by Fred Reichheld of Bain & Company, and Satmetrix. The NPS metric helps your organization do a better job building a more customer-centric company.

Net Promoter Scoring is based upon the answer to a single question asked of current customers. Naturally, even in a simple questionnaire, other questions (besides the ultimate one) are used to get at underlying reasons for particular responses. Follow-up phone conversations delve deeper into individual clients’ motivations.

The Net Promoter question asks customers: “How likely would you be to recommend this company to a friend or colleague?” Answers to this question allow your company to track promoters and detractors. Your resulting Net Promoter Score produces a clear measure of your organization's performance as seen through your customers' or clients’ eyes.

How Net Promoter Scores ™ are Measured

Promoters are your customers who are so enthusiastic about your firm or brand that they not only increase their own purchases, but also refer their colleagues or peers. These are customers that give a rating of 9 or 10.

Customers who give you a rating of 7 or 8 are considered neutral and do not factor into the NPS Score.

Detractors are customers who feel so badly treated that they cut back on purchases, switch to your competition, and warn others to stay away from your company. Detractors are customers giving ratings of 6 or lower.

You determine your organization’s Net Promoter Score by subtracting the percentage of “detractors” from promoters to get an overall NPS number as shown below:

% of Promoters - % of Detractors = Net Promoter Score (NPS)

Because results (scores) are tied back to specific individuals, your company can also focus closely on the NPS^® results of individual customers.

If your organization is waiting for clients to complain, rather than soliciting their positive or negative opinion of your brand or company, you may not get the feedback until it is too late. Market Research Surveys indicate that the majority of your clients are very unlikely to volunteer negative information - they are much more likely just to go to a competitor.

Ready to get started? Contact Direct Opinions today for a quote on developing a Net Promoter Score for your organization today! For more detailed reading on NPS, visit: www.netpromoter.com .

Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.