Your introduction to the Net Promoter Score Guide
This guide covers what you need to know about Net Promoter Score, including chapters on the:
- Net Promoter Score
- Employee Net Promoter Score (eNPS)
- Net Promoter Score System
- Net Promoter Score Survey
- Net Promoter Score Calculation
- Net Promoter Score Questions
- Tracking the Net Promoter Score
- Analyzing the Net Promoter Score
- Net Promoter Score Benchmark
- Strategies to improve your Net Promoter Score
What is Net Promoter Score?
Net Promoter Score (NPS), a customer feedback metric is a brainchild of Bain & Company. It is being widely used to measure customer loyalty and satisfaction by asking simple question 'How likely is it that you would recommend [Organization/Product/Service] to a friend or colleague?' It can be measure by gauging the willingness of customers to recommend a company, it's products or services to others. Net Promoter Score ranges from -100 to 100.
Brief History of Net Promoter Score
The Net Promoter Score metric was introduced in the year 2003 by Fred Reichheld of Bain & Company through his best-selling book named "The Ultimate Question: Driving Good Profits and True Growth".
Over the years, we have seen an unprecedented level of the growth in the Net Promoter Score metric users. More than two-thirds of the Fortune 1000 list currently use Net Promoter Score to determine the customer loyalty. Thousands of leading brands such as Apple, Intuit, G.E., and American Express began using NPS to measure customer loyalty and engagement. With such growing popularity, Net Promoter Score has become the gold standard customer experience metric.
Employee Net Promoter Score (eNPS)
Employee Net Promoter Score (eNPS) is derived from the concept that is built around the Net Promoter Score (NPS), which was originally developed by Fred Reichheld, Bain and Co. and Satmetrix in the 1990’s.
eNPS is an employee feedback metric that enables you to measure employees' loyalty based on the simple eNPS question: “On a scale from 0-10 how likely are you to recommend our organization to your family or friends?” Based on this question employees rate their willingness to recommend their workplace to their family or friends. Read more about Employee Net Promoter Score.
Importance of Net Promoter Score
Net Promoter Score is the key indicator that can be used as a predictor of business growth. if you've high net promoter score it indicates that your customers are loyal to your products or services or brand. This healthy customer relationship will elevate your brand image and help you to grow your business exponentially. Read the full chapter on Why measure the Net Promoter Score.
Net Promoter Score System
According to Bain & Company, the Net Promoter System is a business philosophy that commits to customers and employees alike. Net Promoter Score System comprises different parameters including Net Promoter Score Scale, Classification of Respondents, and components of the Net Promoter Score System. Read more about Net Promoter Score System.
Net Promoter Score Calculation
There's only one standard (and right) formula to calculate the Net Promoter Score, as laid out by Bain & Co. Based on how you conduct the NPS Survey, you can use various methods to derive to the Net Promoter Score. Explore how to calculate your Net Promoter Score.
Net Promoter Score Benchmark
The Net Promoter Score Benchmark provides you with a clear insight into how the other organizations or leaders delivering the best customer experiences in each industry. These NPS standards help you to prioritize your customer experience strategies and tailor your business to your customer needs.
Many industry leaders conduct surveys regularly to evaluate the NPS for their business. This enables them to establish a Benchmark to figure out their performance in the market and improve the loyalty of their customers towards brand. Read the full chapter about Net Promoter Score Benchmark.
Net Promoter Score Survey
Net Promoter Score (NPS) Survey comprises a Net Promoter Score question (How likely are you to recommend us?) is sent to customers to get a concise understanding of their loyalty with the brand or organization. Response to this question help you to identifying the potential promoters and detractors of your brand. Explore more about Net Promoter Score Survey.
Net Promoter Score Survey Questions
The Net Promoter Score Survey is ideally a two-part questionnaire. The first part is the Net Promoter Score Question - How likely are you to recommend us to your friends and family? The second part is reasoning behind the score. This reasoning question is popularly an open-ended question, but can be a close-ended one as well based on your business needs. Read the full chapter about the Net Promoter Score Survey Questions.
Ways to Collect the Net Promoter Score Survey
To track the Net Promoter Score of your business, you need to conduct the Net Promoter Score survey to collect the customer feedback. The channel you choose to collect NPS feedback determines the quality of the responses. There are different channels available in the market to distribute your net promoter score survey. To explore the channels to collect NPS feedback, read the full chapter of 'How to collect the Net Promoter Score Survey'.
Tracking Your Net Promoter Score
Net Promoter Score is not mere a score, it is a tool that help you track your business position in the market. This score empowers your business with the platform where you can easily predict the growth opportunities and threats of your business.
This powerful metric enables you to collect and track customer satisfaction over time. Acting on the data collected through NPS Surveys helps you to address the pain point of the customers and mitigate the impact of negative impact. Read full chapter of 'How to Track Your Net Promoter Score'.
Strategies to Improve Your Net Promoter Score
To raise your Net Promoter Score you need to keep check on your promoters, detractors, and passives. If you could able to maintain your rating across each segments (promoters, detractors, and passives) you can easily improve your net promoter score. Explore top strategies to improve your NPS in the chapter 'How to Improve the Net Promoter Score'.
Net Promoter Score Survey Software