What is Net Promoter Score and how do I use it?

What is Net Promoter Score and how do I use it?

So, you’ve heard a little about this Net Promoter Score thing right?

Basically, NPS is a metric used to gauge how many of your clients/customers/fans love you and will “promote” or “detract” from your brand/company/service/etc…

It is exceptionally easy to track and is done via the form of asking one simple question: “How likely are you to recommend our Brand/Product/Service/Company/etc… to a friend or colleague”.

The rating scale for this is quite simple, it’s just a 0 to 10 rating. A rating of 0 being “not likely at all” and a rating of 10 being “very likely”.

So far so good, but now it gets slightly trickier to understand.

NPS categorizes 3 different types of individuals based off their rankings:

  1. Promoters (ranking 9-10): These are people that are going to go out and actively promote your company/brand/product/service - kinda like Apple fans!
  2. Neutral (ranking 7-8): These are people that will neither detract nor attract from your company/brand/product/service - imagine dishclothes, nothing exciting, but necessary
  3. Detractors (ranking 0-6): These guys either despise you, or like something better, bottom line, they will be more of a detractor from your brand than anything else - remember Myspace?

Ok, so now we understand the different ranking scales and what they mean, but this info alone doesn’t give us our NPS score just yet, that requires a little bit of maths.

Your NPS score is calculated with the following formula:

  • NPS Score = % of Promoters - % of Detractors

(you don’t worry about passives in the formula)

So, let’s put this formula in action with the Imaginery Company X’s 40% Promoters (9-10 ranking) and 25% Detractors (0-6 ranking):

  • Imaginery Company X’s NPS = % promoters - % of Detractors
  • Imaginery Company X’s NPS = 40% - 25%
  • Imaginery Company X’s NPS = 15%

So a NPS score of 15% doesn’t actually sound to great, but in actual fact, it’s not to bad. Companies scoring 50% and higher are considered excellent!

Tracking NPS is a really useful metric and contributes to organic growth, it also provides a great way to get feedback from users during the NPS survey by adding in a comment box.

When tracked month on month, it get’s even more powerful as you can start seeing if your plans/changes/improvements are having the desired effects.

Nicholas McCreath
May 27, 2013
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