What You Need to Know About Net Promoter Scores and Customer Feedback

Do you solicit feedback from your customers after a sales or service experience? If so, then you may be interested in how to quantify the insights you receive into a metric that helps you judge the efficacy of your sales and customer service processes. The Net Promoter Score is one such metric that allows businesses to determine how satisfied customers are with a brand. In this post, we'll explore how Net Promoter Scores work and how they relate to the customer feedback you collect.

What is a Net Promoter Score?

Net Promoter Score (NPS) is a metric introduced by Fred Reichheld, Bain & Company and Satmetrix in 2003 to measure customer loyalty. In particular, a business's Net Promoter Score is determined by the answer to the question: How likely are you to recommend our [company / product / service] to your [friends / family / business associates]? The question can be answered on a scale of one to ten, with one being least likely to recommend and ten being most likely to recommend.

  • Customers that choose an answer between zero and six (0 - 6) are considered Detractors. Detractors are your least satisfied customers: the ones that would not purchase again unless there were no other alternative and the ones most likely to say something negative about their experience with others.
  • Customers that choose seven or eight (7 - 8) are considered Passives. Passives are satisfied customers who are less likely to say anything positive or negative about their experience with others. 
  • Customers that choose 9 or 10 (9 - 10) are considered Promoters. Promoters are your most satisfied customers who are likely to say something positive about their experience with others. 

The overall Net Promoter Score for a business is the percentage of customers who are Promoters less the percentage of customers who are Detractors. If your business has 65% Promoters, 20% Passives, and 15% Detractors, your business's Net Promoter Score would be 50. (Since Passives have no effect on your business's customer acquisition, they are not reflected in the formula, but still included in the total percentage.)

Does the Net Promoter Score Represent Customer Loyalty

While a business's Net Promoter Score is supposed to be a customer loyalty metric, it's argued that the metric more accurately measures the potential word of mouth customers are likely to generate about a business. Another way to interpret the Net Promoter Score is to look at it as a scale of improvement. If your business's NPS goes from 50 to 65 after you've implemented changes to your sales and customer service process based on responses to customer satisfaction surveys, you'll know those changes have made a positive impact on customer experience.

How to Use Customer Feedback to Improve Service

The key isn't the score itself - it's how you use the feedback from your customer to improve your business. If you notice several customers have left feedback about their experience with a particular person or department in your business, that person or department may just need a little brush up on their customer service training. Once all said and done, your overall Net Promoter Score should start to improve as more customers enjoy a better experience.
Do you want to increase your customer satisfaction survey responses to determine your business's Net Promoter Score? Sign up for a free Teakah account, customize your customer service questionnaire, and pay for the incentives offered to customers who share their insights into your business processes.

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