02 Apr Net Promotor Score – The One Number You Need To Grow
On a scale of 0 to 10, with 10 being the highest, how likely are you to recommend us to a friend or family member?
Today, we are seeing more and more companies send us these survey questions as they try to gauge our behaviors and attitudes as customers. They are measuring what is called a Net Promoter Score. The Net Promoter Score (NPS) was first created by Bain & Company to help companies measure and evaluate customer loyalty. Fred Reichheld, a partner at Bain & Company, created this new way of measuring how well an organization treated the people whose lives it affected.
How NSP Works
The NPS works by sending a quick, one question survey to your customers that asks them: “How likely are you to recommend Company X to a friend or colleague?” The question has a 1-10 rating scale for respondents to answer, with 10 being extremely likely to recommend and 0 being not at all likely.
How to calculate an NPS (photo credit)
By measuring customer loyalty you can identify customer experience weak points that need improving. The score, on a scale of, say, one to 10, falls into three groups.
- “Promoters” are loyal customers who keep buying from your company and urge friends to do the same (scores of 9 and 10)
- “Passives” are satisfied but unenthusiastic customers who can be easily wooed by your competition (scores of 7 and 8)
- “Detractors”are unhappy customers who are known as ‘at risk’ and spread the majority of the bad word of mouth (scores 6 and below)
To determine your official NPS score, take the percentage of promoters (nines and 10s) and subtract the percentage of detractors (sixes and lower). That final percentage is your NPS.
Glympse is Proud to Help Increase Our Customers NSP by as much as 25%!
At Glympse, we work with Fortune 1000 customers who measure their NSP, and we’re proud to help them increase their scores and grow their business. Our number one priority here at Glympse is to make our customers happy and successful. We are proud to have recently helped increase one of our customers’ NSP by 25% over a one-year timeframe!
Why is NSP Important?
Why is this important to our customers, you ask? Because Promoters account for 80% of referrals in most businesses (Net Promoter System, 2013), and they generally defect at lower rates than other customers. That means that they have longer, more profitable relationships with a company. And Detractors account for 80% of negative word-of-mouth (Net Promoter System, 2013).
With the importance of customer experience today, using the NPS holds companies accountable for the level of service and overall experience delivered. Here at Glympse, we provide the ability for our customers to seamlessly ask that one question at the right time to their customers to collect that feedback into what your customers really think.
Contact us to find out more about how the Glympse platform and tools have helped our customers make better-informed decisions that actually boost customer satisfaction and build loyal customers.