How Net promoter score (NPS) works
You have probably answered several surveys. Some very long others a little shorter. It is common for surveys to be designed for a specific purpose and as a respondent is prompted to think about different areas from a specific business. In the early 2000s, Fred Reichheld researched how surveys have the greatest effect.
Which questions are important and which tend to become redundant?
The research showed that several issues thought to be important actually had no effect at all. It was observed that the question "Would you recommend the company/product to a friend or colleague" was directly linked to the companies' success. By asking this question, the companies directly gained an insight into how their customers experienced meetings with their business. The higher the score the customer gave, the more loyal he was too. A number of conclusions could be drawn from this question, which provided companies with valuable information about their customers' behaviors.
There are several ways to scale the NPS responses but the most common is 1-10 where 1 is the lowest possible rating. The customers are then divided into 3 categories:
1-6 Negatives
Those customers who have a moderate to poor experience. These customers may come back but will not recommend you further, in some cases even speak badly about your business.
7-8 Satisfied customers
The customers who think you live up to expectations but no more. These customers will return but will not actively recommend you.
9-10 Ambassadors
The customers who are more than satisfied. These customers are your promoters. They come back to a greater extent than others and will actively recommend you to others.
The net promoter score then becomes the total score of the number of ambassadors in % - the number of negatives in %.
This constitutes a score between -100 and 100.
The companies that have succeeded the best have an NPS of between 60-80.
Responsr is not just a tool to find out your net promoter score, but a whole system for working with your customer relations (net promoter system). Please read more about the net promoter system in the next post.
Please read more in the Book The Ultimate Question 2.0: How Net Promoter Companies Thrive in a Customer-driven World