Net Promoter Score™ (NPS) is a globally recognised customer satisfaction metric that is used to rate your customer’s experience with your business.
NPS™ was pioneered in 2003 by Friedrich and Bain to find a better way of understanding customer satisfaction than the usual, and often lengthy, customer surveys. Working alongside data provided by Satmetrix, they were able to establish a question which allowed them to best understand and predict customer behaviour:
What is the likelihood that you would recommend X to a friend or colleague?
People who responded highly to this question were most likely to contribute further to a
company’s growth, whether through referral, repurchasing or any other positive act.
The advantages of NPS™
NPS™ provides you with a score between -100 and +100, making it simple to understand and easy for your entire organisation to get behind.
A strong NPS™ score indicates strong business performance, from frontline staff to marketing and finance.
Other methods of measuring customer satisfaction are based on their last interaction; asking for an opinion after the service has been provided.
NPS™ provides an opportunity for you to understand your customer’s experience across their entire journey with you.
NPS™ is based on one question, but the crux of getting actionable insights is with the all important follow up question; why?
Asking this allows you to ascertain areas for improvement and areas of strength within your service provision.
NPS™ is a globally recognised metric, providing you with a framework that is widely used and the ability to benchmark your performance against that of others.
There’s internal benchmarking, too; you can discover the areas that offer better customer service within your business.
Beyond offering the ability to see an overall score, NPS™ allows you to understand how your business performs over time.
You may notice that your organisation performs better at certain periods by comparing year-on-year performance.
Beyond measuring satisfaction; NPS™ helps you to understand customer loyalty and the likelihood of new and repeat business.
NPS™ can be used to help forecast your business growth, cash-flow and assess the overall health of your brand.