Do you know what your NPS is (Net Promoter Score)? Have you ever heard of the term? The acronym is straight forward. Net meaning part of a total, Promotor linked with how likely your client or interaction will produce a positive recommendation, referral or endorsement and Score the actual value which is the product of the sum.
Importantly, the NPS is a vital metric for all companies and should be monitored carefully because it’s basically a customer appraisal of how well you’re operating. It’s direct feedback. Every NPS needs a question & a rating 0-10 e.g.
“Based upon your recent interaction how likely are you to recommend our services or products to a friend, family or colleague?”Example NPS question
How is it measured? Your NPS is measured on a scale of 0 – 10 with 10 being the highest and most positive. Its calculated as percentage of the total number of people who rate your offering as “>=9” greater than or equal to nine and above. Basically your 9s and 10s which are your promoters minus all the people that rate you <=6, less than or equal to six and below, your detractors, 7 & 8 are passives who are neither likely to promote or detract. Ok now we’ve done the theory bit here’s an example.
In the example below, 50% are promoters, 20% as passives and 30% are detractors so this results in an NPS score of (50% – 20%) = 30.
Should I published my NPS, how should I use it? Well the way your business uses this is up to you, but if your NPS is very low or you don’t have enough data for meaningful feedback then I would suggest keeping it internal and improving it. If you have an NPS of 70-75 and above this should be celebrated and shared.
Cadava get’s our first review internally which is contributing to our NPS. We’re growing our clients and can say our NPS is positive but we need to collect more data and client.
If you need any help on how to implement this within your organisation come and talk to us we can help you make sense of this. In the simplest strategy you will need a form, using a good questions that all customers should complete.
Stay tuned – Cadava content team!