When it comes to really understanding customers and employees, and understanding how much they like a company, most people are just guessing. They don’t have any real data and if they do, it’s often misleading.
That’s why there is only one surefire way to know if your customers or employees love you. Through your Net Promoter Score (NPS). So what is it?
What is a NPS?
Your Net Promoter Score is essentially a metric that tells you the quality of your customer experience. You can use your score to improve many aspects of your business such as customer service and customer support. All of this helps to build customer loyalty, which is vital to the success of a business.
“As a business metric, NPS helps companies of all sizes organize around a mission-critical goal-increase their score by earning more enthusiastic customers-that can be easily tracked and quantified over time.” – Hotjar
You can gauge all you need to know through the data of one simple question. This question will provide you with the data you need to get your NPS. So, what question is that?
The Question/Formula to Your NPS
The question you need to ask to gain the data you need to calculate your NPS is this:
- On a scale of 0-to-10, how likely is it that you would recommend this brand to a friend or colleague? (10 being extremely likely and 1 being extremely unlikely.)
Sounds simple, right? It’s easy for your customers to answer and, therefore, easy for you to get enough answers to have the data you need to calculate your NPS.
“As a customer, this question forces you to place a value on your experience with the brand and asks you to stand by it. Your colleagues and friends are people who trust you for your good sense of quality, and if they have a terrible experience after following your recommendation, their opinion of you will also be marred by the negative association.” – Qualtrics
So, what next? How does the calculation work once you have all your answers?
How to Calculate Your NPS
You can calculate your NPS by subtracting the percentage of detractors from the percentage of promoters, but what are detractors and promoters?
Detractors are anyone who answers the question between 0 and 6, while promoters are anyone who answers the question with a 9 or a 10. Anyone in between is a passive.
“For example, if 10% of respondents are detractors, 20% are passives and 70% are promoters, your NPS score would be 70-10 = 60. Your NPS could range from -100 to 100. The ideal score would be 100, based on 100% of customers being promoters.” – Qualtrics
There you have it: that’s how you calculate your NPS. It’s not difficult at all! Just send out a customer survey, include that question, and voila! You’ve got all the data you need to know the quality of your customer experience.
Do you ask your customers this question? Let us know in the comments below!
If you have questions or would like more information, we’d be happy to help. Please send us an email, and someone from the team will get in touch with you!
Editor’s Note: This post was originally published in January 2018 and has been edited for accuracy and comprehensiveness.