What Is a Net Promoter Score (NPS)?
Are you looking for ways to improve the customer experience at your business? Are you looking for key metrics you can use to determine what your customers think about your customer service? The Net Promoter Score (NPS) is a metric used by many businesses in many industries to learn about their customer service and many new business owners want to know – what is a net promoter score? To put it simply – NPS is a simple yet powerful tool that helps you calculate customer satisfaction and loyalty. Learn more about this simple yet effective tool with an overview created by the boostCX Team.
The Net Promoter Score is a vital metric used by businesses in many industries to assess customer loyalty and overall satisfaction with your products or services. The score involves some simple math and is calculated based on responses to a single question – how likely are you to recommend our products or services on a scale of 1 – 10? The NPS is calculated based on the responses provided by your surveys – and we are here to tell you how.
How To Calculate Your NPS
It is pretty simple to calculate your Net Promoter Score and involves just a few simple steps and some basic math. Remember the question you asked in your survey where your customers provided a score of 1 – 10? When you collect that data, you want to group those customer responses by their scores. Customers who responded to the survey question with a 9 – 10 are categorized as Promoters, those who responded with a score of 7 – 8 are categorized as Passives, and customers who answered the survey with 0 – 6 are categorized as Detractors.
To calculate the NPS for your business, you need to determine the number of Promoters and Detractors established by your survey. The next step is to calculate the percentage of respondents who are Promoters and Detractors within the total scope of your customer survey. Use those numbers and subtract the percentage of Detractors from the percentage of Promoters – which will provide you with a number from -100 to 100. That is your Net Promoter Score.
What Is a Good NPS Score?
A good NPS score will vary based on the industry you work in and the standards set by your customer base. In general – an NPS score above 0 is considered Good, as it indicates that you have more promoters than detractors for your products and services. A score greater than 50 is Excellent and indicates a high level of customer satisfaction and loyalty. A score of 70 or above is Exceptional and is achieved by top-performing companies that provide a superior customer experience. While a high NPS score is important, it may be more important to note that a Net Promoter Score should be used as a benchmark for improvement over time, rather than a standalone number. Regularly measuring and tracking your NPS can help you understand how changes in your business impact customer satisfaction and loyalty.
If you have asked – what is the Net Promoter Score (NPS)? We hope that this overview created by boostCX has provided additional insight into this vital tool that provides a clear measure of customer loyalty and satisfaction. It can help businesses understand their customers better and identify areas for improvement and is just one piece of the customer experience puzzle. To enhance customer satisfaction and loyalty, businesses need a comprehensive approach that includes gathering and acting on customer feedback, analyzing customer data for insights, and managing their online reputation – and the boostCX Customer Experience Platform may be the answer.
Contact boostCX today to find out how we can help you improve your customer service!