What is Net Promoter Score (NPS)?
Service Excellence
2 years ago
Net Promoter Score (often referred to as “NPS”) is a measuring tool to gauge customer satisfaction by assessing a customer’s willingness to recommend a company’s products or services to other people. More than two-thirds of Fortune 1000 companies have adopted Net Promoter Score as a way of gauging customer satisfaction. NPS is such a common assessment tool, you’ve likely been polled without realizing what it was.
NPS asks customers the simple question, “How likely are you to recommend this company to a friend?” on a scale of 1-10. Based on their response, a customer is put into 1 of 3 groups.
Promoter
Promoters are classified as those who rate a 9 or 10. This group is considered “raving fans”: they likely buy more from a company, remain customers longer, and refer other customers. These fans are loyal to the business.
Passive
Passives are those who rate a 7 or 8. Considered as neutral, this group will remain loyal to a company if the conditions are pleasant. However, they will also move to a competitor with the right motivation. At this point, they are unlikely to refer other customers and are not included in the NPS calculation.
Detractor
Lastly, Detractors are what we call those who rate 1-6. This group is most likely dissatisfied and can potentially damage a brand’s reputation by word of mouth or by seeking out other providers.
Calculating NPS
The final score is calculated by subtracting the percentage of detractors from the percentage of promoters. If a company has more detractors than promoters, its score will be negative.
What does Wildman’s score mean to me?
As a baseline, a score above 0 is considered favorable, above +20 high, and above +50 excellent.
We’re thrilled to have a score of +70. Most others in our industry range from -27 to +33.
Sure, a positive 70 is great for Wildman; but what does it mean for me?
Our Net Promoter Score is summarized in 3 main points:
- Commitment to service: We’re committed to working with you as a partner. We work with you to assess your business needs and determine the best solution for you.
- Increased focus on relationships: We support our team members, customers, vendors, and our community.
- Consistent service from a friendly face: Higher team member retention and engagement means better service for you. As a result, tenured employees know you by name and how to best serve your business.
Gathering customer responses through NPS provides us with valuable feedback. We use this to recognize our team members for a job well done or to make any needed adjustments. For the last 7 decades and for the next 7 decades and beyond, we’re committed to taking care of our customers as family, which allows you to properly focus on running your business.
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Written by Rebecca Elliott at Wildman Business Group.
