What is Net Promoter Score?

Net Promoter Score (NPS) is a metric used to predict customer purchase and referral behavior by measuring customer experience.  NPS is not restricted to only measuring the satisfaction level of a customer over a specific interaction or event, but to measure the overall customer loyalty to your organization or product.

Typically, a single survey question is sent to your customers, asking how likely are they to recommend your company to a friend or colleague. The customer is requested to give a score between 0 and 10, which is later used to calculate the NPS of your organization

net promoter score

Understanding NPS

There is a strong correlation between NPS and your organizational growth, because customer loyalty is an important component of growth. Based on how your customers score you, NPS categorizes your customers into:

Detractors: Customers who gave you a score of 0 to 6, indicating dissatisfaction.

Passives: Customers who gave you a score of 7 or 8, but not likely to recommend your product/organization actively to others.

Promoters: Customers who gave you a score of 9 or 10, and are likely to actively recommend your product/organization to others.

Net promoter score

What NPS means to your organization?

Getting a positive NPS means that there are more customers who would like to recommend your product to their friends and colleagues. On the contrary, if you have a negative NPS, it implies that more customers are likely to discourage others from using your product.

Secondly, you can also use NPS to measure the number of healthy and sustainable customer relationships and the customers that are likely to churn. Further, organizations can use this information to build customer loyalty programs and thereby the growth strategy.

That said, what’s even more valuable than the score, is the open-ended feedback you receive from your customers as part of the survey which indicates the gaps in enabling customer experience in a better way. The feedback helps you identify the specific parts of the customer journey that needs improvement.


How can your sales and customer support teams use NPS?

The most successful organizations around the globe are the ones that effectively use NPS data. They use it to improve their sales, customer support, product development, and more.

Improving the value proposition

NPS data can help you bridge the gap between what your customers want and what your product offers. As you analyze your feedback from customers, you can start identifying the features and benefits that are most valuable to your paying customers. Thus, instead of relying on assumptions or trial and error, you can rely on the feedback information to tweak your sales pitch and focus on the value proposition that’s most relevant to your customers.

Reviving inactive prospects

If you see a large number of opportunities in your sales pipeline going cold, sending out a NPS survey can be a great opportunity to reconnect. The only change here is, instead of sending out the survey to your existing customer, you need to build a customer list of prospects and ask them for feedback. While very few out of that list might actually respond to your survey, it can help you with a) identifying prospects still interested in taking the conversation forward b) understanding why the deal didn’t proceed further. 

Upselling and cross-selling

Customers with high NPS ratings can mean that there’s opportunity for sales teams to target these accounts for upselling and cross-selling. And it is  helpful even for marketing teams because NPS ratings help them identify the customers they can approach to build case studies and use cases.

Contextual insight on customer experience

For the customer support executives, NPS provides an insight into how customers feel about engaging with your organization and the denominators that contribute to it. Displaying the NPS rating and feedback alongside a customer profile, can help in giving the support reps a better context while they handle support queries. When customer support agents are armed with the customer context, they can become the voice of the customer, internally and drive change.


What next?

Key metrics to measure the success of your customer support

Every organization needs to measure the effectiveness of their customer support. Without measuring it, it is impossible to ensure progress.You need to have clear metrics to measure the level of customer service your team is providing.

customer support metrics