What is the Net Promoter Score (NPS)?

What Is NPS Cover

Do what you do so well that they will want to see it again and bring their friends.” – Walt Disney

No one goes there nowadays, it’s too crowded.” – Yogi Berra

The pages that follow are meant to help corporate service professionals design conversations to introduce the concept of the Net Promoter Score, or NPS, to their leadership and colleagues.

The NPS has become a part of highly performing corporation’s KPI stack.

Asking a single question, NPS makes capturing the perception of your brand, whether with customers of employees, a breeze.

I hope this sparks some conversations for you and get’s you thinking about how your customers and employees think of you.

You’ll be better for it.

Read it.

Expand upon it.

Shrink it.

Share it.

Share with me your success stories and flops.

I want to learn more about you.

(BTW, all photos belong to their copyright owners.)

 

Thank you,

Bill Corrigan

bill@billcorrigan.com

bill@alphadawn.com

 

CLICK HERE FOR A PDF VERSION OF THE WHAT IS THE NET PROMOTER SCORE PAPER

 

What is the Net Promoter Score?

Simply put, you can think of the The Net Promoter Score (NPS) as a measure of loyalty. It is an important measure regarding the customer or employee experience.

 

Why should you care?

The NPS has been adopted as a key indicator of potential future business growth. Companies with loyal customers and employees tend to have higher measures of long-term organizational success.

A loyal customer is a buying customer.
A loyal employee is a productive employee.

Not calculating NPS today? Don’t be surprised if your company gets a new CEO or COO and they ask you what your NPS is. And they’ll want it “today!” You should, at a minimum, know what it is, even if you’re not regularly capturing and calculating.

 

How is the NPS calculated?

You ask one simple question:

For customers: “How likely is it that you would recommend [our brand] to a friend?”

For employees: “How likely is it that you would recommend working here to a friend?”

Respondents are grouped into three categories:

  1. Promoters (score 9-10) are loyal enthusiasts who will keep buying and working and refer others, fueling growth.
  2. Passives (score 7-8) are satisfied but unenthusiastic customers and employees who are vulnerable to competitive offerings.
  3. Detractors (score 0-6) are unhappy customers and employees who can damage your brand and impede growth through negative word-of-mouth.

NPS Scale Blog Post

Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can range from a low of -100 (all respondents are Detractors) to a high of 100 (all respondents are Promoters).

You can apply the NPS to anyone you you serve.

NPS Blog Post

Why is it valuable?

You gain insights.

It is easy to adapt.

It is quick to deploy.

It is versatile…

Are you a Client Service manager?

You can have your CSRs ask each customer they interact with how each call made them feel.

“On a scale of 0 to 10, where 0 is ‘extremely less likely’ and 10 is ‘extremely more likely’ how likely will this call make you recommend [our company]?”

Are you a Learning and Development manager?


You can assess how your programs impact employee loyalty. Simply modify your NPS question:

“On a scale of 0 to 10, where 0 is ‘extremely less loyal’ and 10 is ‘extremely more loyal,’ how did this class make you feel about the company?”

 

What should you begin to think about?

Does your company use the NPS today?

Should it?

What ways can you start conversations about implementing NPS at your company?
What would you do if your NPS was a -30? 50? 90?
What steps can you take to deploy NPS?
What mechanisms would you use?
Why aren’t you doing it right now?