What is Net Promoter Score ?
The metric was developed by Fred Reichheld, Bain & Company and Satmetrix. It was introduced by Reichheld in his 2003 Harvard Business Review article "One Number You Need to Grow".
Because NPS® uses a standardised metric, it allows businesses to compare their results with industry competitors.
NPS® is the #1 predictor of future growth.
It's the one statistic that gives you a complete picture of how your customers perceive your company.
Possible answers range from a 0 (not at all likely) to 10 (Extremely likely). The NPS score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. The resulting score ranges from -100 to 100.
Responses to a couple additional short questions capture valuable feedback, actionable insights, and testimonials.
% of Promoters - % of Detractors = Net Promoter Score®
Customer Loyalty > Customer Satisfaction
A loyal customer is one who prefers your business over all of your competition.
A satisfied customer means that you met their expectations. This doesn't mean they would choose you over another in the future.
NPS® identifies your weaknesses in your ability to provide a frictionless customer experience as well as those customers who are satisfied and those who are loyal. NPS provides you the data and opportunity to turn satisfied customers into loyal customers - and leveraging their positive referrals and testimonials to help grow your business.
A 2% improvement in loyalty is the same as a 10% improvement in operating profit.
I Already Survey My Customers...
"Measuring Client Loyalty"
and Additional Resources
If you regularly survey your customers with positive results, below are some points that may shake your confidence in your existing score and reinforce the importance of utilizing a 3rd party expert, such as Butler Street:
• Confidentiality and Anonymity. These are immediately increased and allow customers to provide candid feedback. It’s impossible to generate usable data when answers are not completely truthful, for fear of being identified.
• Quantified Results. Butler Street provides industry benchmarks, your scores will be quantified within your industry and you’ll have a clear view of how your company ranks against the competition.
• Best Practices and Valid Data. Avoid mis-worded questions or improperly executed surveys by engaging an expert research team experienced in customer satisfaction surveys. You'll achieve a properly conducted survey and accurate data to begin building a strong growth plan.
Loyalty leaders outgrow industry competitors by over 200%.
Bain and Co.
Having this data, testimonials and the customer loyalty ratings really allows us to differentiate ourselves when meeting new clients and/or referrals. Our competitors cannot say what we can. I would highly recommend this process."
- Karie Ballway, Executive Vice President