Find out what a Net Promoter Score (NPS) is, how to calculate it and how your organisation can use it to measure your customer experience
NPS® is often held up as the gold standard customer experience metric. First developed in 2003 by Bain and Company, it’s now used by millions of businesses to measure and track how they’re perceived by their customers.
It measures customer perception based on one simple question:
‘How likely is it that you would recommend [Organisation X/Product Y/Service Z] to a friend or colleague?”.
Respondents give a rating between 0 (not at all likely) and 10 (extremely likely) and, depending on their response, customers fall into one of 3 categories to establish an NPS score:
Promoters respond with a score of 9 or 10 and are typically loyal and enthusiastic customers.
Passives respond with a score of 7 or 8. They are satisfied with your service but not happy enough to be considered promoters.
Detractors respond with a score of 0 to 6. These are unhappy customers who are unlikely to buy from you again, and may even discourage others from buying from you.
Calculating your NPS score
It’s simple to calculate your final NPS score – just subtract the percentage of Detractors from the percentage of Promoters.
For example, if 10% of respondents are Detractors, 20% are Passives and 70% are Promoters, your NPS score would be 70-10 = 60.
What can you measure using NPS?
You can measure almost anything using an NPS score – so as well as understanding the overall NPS for your organisation, you can track scores for everything from individual products, stores, web pages or even staff members.
What can you do with your NPS score?
NPS is an indicator, providing an overall metric to track, allowing you to monitor improvements in a product, service or organisation.
But there is so much that influences NPS. Take call centre agents for example – one agent may have an NPS score of 78 while a colleague has an NPS of 32. Taken on their own, it’s almost impossible to understand why.
So it’s important to understand what’s driving your NPS scores. That’s where the rest of your customer feedback comes in – by gathering more data than just your customer’s likelihood to recommend you, you’re able to make links between their responses and your NPS.
Take our call centre as an example again – you might also be tracking things like Average Handling Time (AHT) or First Call Resolution (FCR) or even asking for feedback on particular traits like was the agent polite or helpful.
These are all data points that can help you understand what’s driving your NPS score. So when you analyse the data, you can understand what’s influencing your scores.
For example, running a key driver analysis, you might find that AHT is the biggest driver of your NPS score, allowing you to prioritise improvements in order to enhance the overall experience
You might find too that key drivers are different for different segments like age groups or genders, so you can adapt your approach to different audiences in order to offer the experience they expect.
Essentially, the more data you can collect and analyse alongside your NPS score, the more you’ll be able to understand what’s driving your customer experience, allowing you to prioritise your improvements to have the biggest impact on your customers.