Eduardo E Sierra Are you looking to measure customer loyalty? A solid metric is the Net Promoter Score.
This straightforward question reveals your customers’ likelihood of recommending your company or brand to others.
How do we calculate the Net Promoter Score?
Ahh, here’s that wonderful question: How likely are you to recommend (company/brand) to others?
Using a scale of 0-10, the responses will fall in any of the following 3 categories:
Promoters: these are the responses that land on a 9 or a 10. It’s safe to say that these are your most satisfied and loyal customers. They can even be your brand ambassadors, guiding indecisive clients through the buying decision process.
Passives: these responses land on a 7 or an 8. Although they may be satisfied customers, they do not feel a connection with your products/services. Actually, if your competition offers something tempting, they’ll have no issues in walking away.
Detractors: these responses are a 6 or below. Unhappy and unsatisfied customers are a serious threat to your company’s growth. Remember, word of mouth is powerful.
Now that you are familiar with the categories, let’s imagine that you had 100 responses.
Out of those 100 responses, 60 landed in the Promoters category and 20 landed in the Detractors category.
Using the following equation:
(No. Promoters/Total Responses) – (No. Detractors/Total Responses) x 100 = NPS
(60/100) – (20/100) X 100 = 40
We determine that your Net Promoter Score is 40.
Hold on! Don’t fret, your Net Promoter Score is relative. There are ways to determine whether that number is good or not.
For example, competitive benchmarking allows you to determine how well your company is doing in the industry. Also, if you survey your customers frequently, your NPS can say plenty about the customer experience. A rising Net Promoter Score is definitely a good sign.
Here’s something to ponder: have you calculated your brand’s Net Promoter Score score lately?
Not only does this number allow you to gauge customer perception and your company’s current situation; but, one simple question can help you discover both strengths and weaknesses.
Allow me to design an appropriate survey that will provide you with useful insights to empower your decision making.
