NPS is the abbreviation of Net Promoter Score. It's a metric for assessing loyalty to a company, brand, products or services, but it can also be used as an indicator of customer satisfaction. NPS surveys are easy to implement and the results are easy to calculate - in this article, I'll give you a quick glance at how it works.
A net promoter score survey is based on a single question: “how likely is it that you would recommend us to a friend or colleague?”, with 0 meaning 'not at all likely', and 10 meaning 'extremely likely'.
Answers are assigned a score from 0 to 10, with 10 being the most positive.
Customers are then divided into three categories:
- Score 9-10 - Promoters, your most loyal respondents.
- Score 7-9 - Passives, satisfied but enthusiastic.
- Score 0-6 - Detractors, who are unhappy.
When your survey is over, the results is calculated by subtracting the percentage of detractors from the percentage of promoters. This gives you a figure between -100 and 100 - your new net promoter score.
NPS is very straightforward, and it allows you to benchmark your company’s results against others in your industry. When Zooma and our friends use NPS, we always add one additional question where the respondent can briefly write the reason for their score. This gives us a clear indication of their satisfaction and usually lets us know where and how we need to improve.
Sometimes, our friends ask for advice on how to get customers to fill out NPS surveys. Consequently, I have compiled a presentation (.pptx) with some of my advice about how you can increase your survey response rate - hopefully it'll come in useful as you try to boost your customer satisfaction.
For more knowledge about the role NPS has to play in customer satisfaction, take a look at our customer satisfaction guide - it expands on this article and mentions a few other ways you can measure and improve your customer satisfaction rate.