Want to observe customer satisfaction and improve your business? Then you need to calculate your Net Promoter Score.
What is Net Promoter Score?
Net Promoter Score (NPS) is a customer satisfaction measurement that involves a business asking clients and customers how likely they are to recommend a product or service to others on a scale of 1-10.
Calculating your NPS allows your organisation to work towards the key goal of making your customers happy, and presents opportunities to constantly improve your business, product or service.
NPS scores are expressed as a number from -100 to 100.
How is NPS Calculated?
Firstly, you have to ask customers to rank your business or product from 1-10 – with popular methods of doing this being website pop-ups or quarterly emails. Votes are split up into three categories:
Promoters
These are customers who answer 9 or 10. They are proud to be a customer of your brand, who will enhance your reputation and will actively refer your company to their friends and family. Promoters help to boost your businesses growth.
Passives
These are customers who answer 7 or 8. Whilst these customers may not actively recommend your business, they are equally unlikely to damage it. Passives are close to being promoters, but may take work to get there.
Detractors
These are customers who answer 6 or lower. Unfortunately, these customers may discourage potential customers from your business.
Calculate Your NPS
Once you have decided on your score collection method and have all of your data collected, you can work out your NPS score by using the calculation below:
Net Promoter Score (NPS) = % Promoters – % Detractors
A negative NPS score indicates you have more detractors than promoters, whereas a positive score means you have more promoters than detractors.
Interpreting NPS
Technically, any score above 0 is ‘good’ because it indicates that a business has more promoters than detractors. Any score below 0 means a business has more detractors than promoters.
Industry averages are 44 for professional services, 58 for utilities and just 36 for software.1
As there is a calculation involved in working out your NPS score, a great way to calculate this is by using Excel or Google Sheets. You can create formulas to take percentages, and display it in an easy to understand format, which can then be passed around your company. This also allows you to keep track of performance in the future, and take action with improvements.
Getting Extra Insights
Although a score can be indicative of how your business is performing, it doesn’t give you exact pointers on how to improve, or similarly any praise on what you’re doing well. Therefore, you could ask extra questions to customers when asking them to rank you on a scale of 1-10, which include:
- Why they’ve given the score they have
- What are ways that their score could be increased
You should also track your NPS score over time to give you benchmarks, in addition to using the information to improve your services and products.
Ballyhoo Net Promoter Score (NPS)
We continue to collect our NPS by emailing our clients, and we are proud to say that our rolling average NPS score is over 80. This is incredibly positive, as it means that our clients and customers are satisfied with our services. It also means that we’ve only ever had scores of 8 and above – which is practically unheard of in the industry.
Want to increase your NPS score? Good user experience starts with your website. Contact us today to see how we can improve your website design, to make the most of it for your customers.
