Author Box
Articles Categories
All Categories
Articles Resources

The Net Promoter Score (NPS): How It Can Help Your Business Grow

April 17, 2012 | Comments: 0 | Views: 287

Designed to help businesses to efficiently and frequently receive critical feedback from their customers, the Net Promoter Score (NPS) differs from other customer satisfaction surveys that are long and deliver minimal business results. Used to drive increased customer loyalty and profitability, this survey is the first of a six-part series on "Survey Strategies to Grow Your Business."

Created by Bain Consultant Fred Reichheld after years of research into customer satisfaction, the NPS methodology focuses on addressing the question of how likely it is you would recommend a company to a friend or colleague. This is the best measure of whether or not a customer will come back and refer your business to others in the future.

The NPS survey can be distributed via phone or online to your customers. The survey can be done regularly or immediately after the business transaction, depending on whether or not your customers interact through long-term or one time dealings.

The following approach is used for calculating your company's Net Promoter Score:

"On a scale of one to ten, how likely is it that you would recommend [the company name] to a friend or colleague?"

  • Promoters (9/10): These customers are strong advocates and will not only return to your business, but will bring you future customers as well.
  • Passives (7/8): These customers do not have any strong feelings about your company. If no better options turn up and it's convenient, they will continue to do business with you.
  • Detractors (6 or less): These customers are actively displeased and will spread negative comments about your business whenever they get the chance (online and other prospective customers of yours).
  • Net Promoter Score: You can calculate this score by subtracting the percentage of Detractors from the percentage of Promoters. The formula to remember is NPS = %Promoters - %Detractors.

Asking one follow up question based on the customer's response is also a good idea. Here are some examples to ask each specific score group:

  • Promoters: What specifically would you tell someone to get them to work with us?
  • Passives: What would it take for you to rate us a 9 or a 10?
  • Detractors: What is the main reason for your score?

No matter what the case is, if the customer is dissatisfied, ask them if they would be interested in having someone in the company following up with their issues directly.

Here are some interesting statistics about the Net Promoter Score and business growth:

  • Most industries have NPSs between 0 and 20.
  • The most successful growth companies in the world (like Apple and USAA) have scores between 50 and 85.
  • Certain industries (like airlines and credit cards) have negative scores.
  • A 5% increase in customer retention typically translates into a 25 to 100% increase in profitability, as discovered by Bain Consulting.

Take a look at Synotac's own survey initiative, State of the Business Owner, and receive access to exclusive research on what it means to be a business owner in 2012. You can also win a chance at a $150 Amazon gift certificate.

Visit our website to read more about the Net Promoter Score (NPS) and how it can help a business grow through calculating customer satisfaction. is a web design and interactive advertising agency located in Portland, Oregon that provides services and tips for generating new business for your company.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Net Promoter Score



In India, employment opportunities are set to grow by a good margin in the coming year, a phase which was started in the turn of the second decade of the 21st century. organisation, candidates with

By: Sarkariexam l Business > Careers Employment l April 01, 2013 lViews: 11708

Sometimes it is amazing to see that certain jobs can precipitate huge turnouts in the recruitment drives. It is as if thousands of people were waiting for the vacancy advertisements and the moment

By: Sarkariexam l Business > Careers Employment l December 30, 2012 lViews: 690

In recent times, jobs in healthcare segments have grown tremendously. It is anticipated that this growth curve will continue for the times to come. Various factors are responsible for this

By: Sarkariexam l Business > Career Advice l December 27, 2012 lViews: 447

Are you in a dilemma whether to choose web based CRM or not? If yes, don’t worry. You aren’t the sole person having this doubt.There are numerous firms trying to make out whether investing in a

By: Reneta Vasileva l Business > Customer Service l December 23, 2012 lViews: 409

If you think about it you will realize the fact that each business has its own set of risks that are involved in it.The trade secrets that you have and the information related to the business is what

By: brumbrum1 l Business > Risk Management l December 23, 2012 lViews: 263

As the time is changing, concierge management services are now growing despite the slowing economies of the world. The main reason of it is the need that is highly specific to the people who like to

By: willsmith10 l Business > Management l December 23, 2012 lViews: 334

Are you in a dilemma whether to choose web based CRM or not? If yes, don’t worry. You aren’t the sole person having this doubt.There are numerous firms trying to make out whether investing in a

By: Reneta Vasileval Business > Customer Servicel December 23, 2012 lViews: 409

Learn about the top four reasons why an outsourced call center company saves you big time bucks Choosing the right call center company for your business is paramount when it comes to delivering

By: sandra88l Business > Customer Servicel November 03, 2012 lViews: 241

From helping the customers resolve any questions, complaints or disputes,to increasing loyalty and retention rates by demonstrating to your customers that their concerns matter,that they are attended

By: jacq rogerl Business > Customer Servicel November 01, 2012 lViews: 248

Learn more about how properly trained reps can make a huge difference when it comes to order taking.Order taking – it’s about so much more than just plugging orders in that arrive via telephone.

By: stonefergusonl Business > Customer Servicel October 27, 2012 lViews: 266

Was the customer service rep helpful,understanding and attentive to your needs? Were they soft spoken, friendly and did they take care of the matter,or resolve the dispute? Did you have to wait on

By: jacq rogerl Business > Customer Servicel October 25, 2012 lViews: 251

Starbucks is very popular not just because of the world-class coffee it serves, but it's also known to be the best when it comes to customer service. Here's what other companies and businesses can

By: Anika Smith Davisl Business > Customer Servicel July 06, 2012 lViews: 242

Discuss this Article

comments powered by Disqus