How Knowing Your Net Promoter Score Benefits Your Business

The most important thing for business is being able to track your return on investment (ROI). There are many tools that companies use today that can estimate customer satisfaction. Today I'm going to talk about one of the easiest Net Promoter Score tools to use. 

What is a net promoter score? According to Wikipedia, it is defined as such:

                     "...a management tool that can be used to gauge the loyalty of a firm's customer relationships. It serves as an alternative to traditional customer satisfaction research and is claimed to be correlated with revenue growth. The tool aims to measure the loyalty that exists between a provider and a consumer."

Decision Anaylst

A Net Promoter Score, or NPS, basically tells the company how loyal customers are to the brand, what they like and don't like, and how the business can improve. NPS measures from -100 to 100. The negative numbers indicate a need for improvement while a positive score means you have happy customers! Once you have the data from your customer satisfaction surveys, you can calculate where your Net Promoter Score lands. 

Thinking positive!

From NetPromoter.com:

 The NPS Calculation

Calculate your NPS using the answer to a key question, using a 0-10 scale: How likely is it that you would recommend [brand] to a friend or colleague?

Respondents are grouped as follows: 

• Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
• Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
• Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter)."

Commerce is always moving and business is always open now in our new market, thanks to the advent of the internet. Your product is available for purchase twenty four hours a day, seven days a week. When you start to see fluctuations in growth, you might want to start sending your customers a customer satisfaction survey to fill out. Encourage comments and communication. The most important thing you will want to accomplish once you have calculated your NPS is turning those passive customers into promoter customers! Once you can see the numbers, you will know your next step.

As you can see, knowing your Net Promoter Score benefits your business by letting you know where your company is strong and where it could use work. You are hearing directly from your customers what they like about your product, while also learning what they don't like. Once you calculate your NPS, you can open your business to expansion and growth! There are many different software tools available online, I prefer the Net Promoter Score tool found here, if you would like to get started. 

Do you know your net promoter score?