What is a good NPS (Net Promoter Score)?
To clarify, NPS or Net Promoter Score is used by businesses to understand how satisfied and how loyal their customers are. It asks a simple question—how likely a customer is to refer you to their circles and asks them to grade you on a 10-point scale. Depending on the score awarded, customer loyalty is measured.
Learn more about calculating NPS here
If you’ve done the hard work and calculated your score, then the next step is making sense of it. You might wonder what a good NPS is, and the short and simple answer is that it’s relative. Yes, that’s basically it. But, if you’d like to learn more, keep reading 🙂
How to look at Net Promoter Score
There are two ways to look at NPS—as a personal benchmark or an absolute score. Let’s look at both one by one.
NPS as a personal benchmark
With this approach, the strategy is to conduct an NPS survey and calculate the score. This score now serves as a benchmark to beat. Businesses would conduct subsequent NPS surveys at regular intervals and track how their scores changed over time.
Needless to say, customer responses would need to be closely studied, and the feedback would need to be acted upon for any positive improvement in your Net Promoter Score.
Learn more about who detractors are and how to win them back here.
NPS as an absolute score
In this approach, you still need to calculate your NPS, however, instead of waiting for the next NPS survey to get some meaningful information, you could compare your score to other published industry benchmarks.
Comparing your score with industry benchmarks not only gives you a leg up when it comes to making amends to your operations and policies, but with the benchmark in hand, it gets easier to set realistic goals for yourself. Regular NPS surveys will help ensure you’re not veering off the track.
How to manage or improve your Net Promoter Score
To recap, your Net Promoter Score is calculated by taking the total number of promoters and subtracting the number of detractors from it. To improve your score, you’re left with two options: turn passives into promoters or detractors into passives. Let’s look at it as an example.
Let’s assume you’re score comprises 50 promoters, 25 passives, and 25 detractors. Your final score would be 25.
If you were to convert 10 detractors into passives, your score would improve to 35, as you’d have 50 promoters and only 15 detractors.
If you were to work your magic with another 7 passives and turn them into promoters, then your score would be a pretty impressive 42.
As to how to convert passives into promoters and detractors into passives, we suggest taking a good look at the feedback you receive and acting on it.
Closing notes
The hardest part of all this is tracking and maintaining records of customer responses and scores. This is where dedicated survey software comes in. The right tool would help you calculate scores, track the changes over time, and act on customer feedback.
