how to use your net promoter score nps

How to use your Net Promoter Score (NPS)

Net promoter scores are one of the most popular ways of understanding whether the service or products you provide are likely to engender loyalty in your clientele.

But while it’s great to have a measure of how satisfied your customers are and how likely they are to recommend you to their peers, once you have that score what do you do with it?

Here’s a quick guide on how to use your Net Promoter Score to improve and grow your business.

What is a Net Promoter Score?

What is a Net Promoter Score

A net promoter score is a ranking that assesses customer loyalty to a business or brand.

The score helps track how a business is performing in terms of customer satisfaction, and is based on the simple question: “On a scale of 1 to 10, how likely are you to recommend our products/services/business to a friend?”.

Answers are then divided into three categories:

  • Those who respond 9 and 10 are considered Promoters, in that they are likely to be true advocates for your business.
  • Those returning a score of 7 or 8 are considered Passives.
  • Those returning 0 to 6 are Detractors, meaning they are less likely to exhibit value-adding behaviour, and may actually work against your business.

The formula for working out the NPS is then: (Number of Promoters — Number of Detractors) / Number of Respondents x 100.

The higher the percentage, the better your organisation is performing when it comes to customer satisfaction and loyalty.

But the value of the Net Promoter Scores doesn’t stop with the number it provides.

Then it’s about using that data to actually improve your business. So how can you use it?

Monitor progress

Monitor progress

A Net Promoter Score isn’t a number that’s provided once only and used in isolation. It should be continually tracked.

Consistently tracking your Net Promoter Sore then sharing it with your staff helps set a benchmark that they work towards.

Ongoing tracking of your NPS also offers clues into what’s working and what’s not at your organisation. For example, a high NPS one week followed by a poor one the next indicates there’s something going on that needs addressing.

It’s better still if a business tracks their NPS in real time as this helps you understand how your customers are feeling in the moment so you can take immediate action to keep thigs on the right track.

Follow up

While the Net Promoter Score provides a metric of how customers feel, it’s then critical to understand the why behind their answer.

Ideally this means the question “how likely are you to recommend our products/services/business to a friend?” is immediately followed up with questions seeking to understand the reason for that answer, including:

  • What is the primary reason for your score?
  • Why?
  • What could we do better?

Together, this information enables a business to identify the areas where they could improve.

Create an action strategy

Create an action strategy

Now that you are consistently tracking your NPS and also looking to understand the reasons for it, it’s time to create an action strategy based on the feedback you’ve received.

And this will likely involve paying particular attention to both your passives and detractors. Passives are likely to be easier to convert to promoters with a little extra attention, while detractors might need some further work.

However, the reality is, your NPS and follow-up questions should give you a clear indication of where any weaknesses lie and what needs to be done to address them.

Identifying our customer

The NPS and its follow up questions also help a business really hone in on exactly who their customer is. This allows a business to segment their customers, value-add and target them accordingly through marketing.

Keep it in context

A Net Promoter Score is a brilliant tool for tracking how your business is performing, helping you identity areas of opportunity and growth.

However, it is just one form of feedback and should be used in a broader context which also includes looking at customer reviews, understanding pain points in the customer journey, and consistently seeking feedback from both your existing customers and your lost opportunities.

For more information on Net Promoter Scores, see here, or view our feedback ExpressPODs which make tracking your NPS score instant and easy.