Net Promoter Score Studies
Accurately gauge customer loyalty and track your NPS score over time to measure the impact of investments made to boost customer satisfaction and monitor for potential downturns in loyalty stemming from newfound dissatisfaction with your products or services.
A Net Promoter Score (NPS) is a customer loyalty metric that measures how likely a customer is to recommend a product, service, or company to a friend or colleague. NPS is very easy to calculate.
STEP 1
Submit a survey question like this to your customers:
How likely are you to recommend company/brand/product to a friend or colleague? Respondents are asked to rate their response on an 11-point scale, ranging from “0” (not at all likely) to “10” (extremely likely).
STEP 2
Count the number of respondents who submitted answers in the following three categories of people:
- Promoters = respondents giving a score of 9 or 10
- Passives = respondents giving a score of 7 or 8
- Detractors = respondents giving a score of 0 to 6
STEP 3
Determine the percentage of respondents in each of the three categories
- Promoters: 100 out of 300 respondents = 33%
- Passives: 150 out of 300 respondents = 50%
- Detractors: 50 out of 300 respondents = 17%
STEP 4
Subtract detractors from promoters and then ditch the percent symbol. For example, 33% minus 17% equals 16%. NPS score is +16.
Positive NPS (>0) scores are generally considered good. Here are sample NPS scores of companies you probably know, just to give you a frame of reference:
- Starbucks: +77
- Apple: +47
- Microsoft: +45
- General Electric: +20
- Google: +11
- Coca-Cola: 0
- Walmart: -4
- Yahoo: -9
- Facebook: -21
Source: Customer Guru, March 2020.
NPS is a leading indicator of future growth. The larger the number of advocates for your product or service, the lower the customer acquisition costs for the company. It’s also a “canary in a coalmine” as the first decrease in NPS could indicate a problem with your products, services, or customer-facing aspects of your business.
So, why turn to LeadingEdge to help you ascertain your company’s NPS score?
We Go Beyond NPS
It’s important to know your company’s NPS score, but LeadingEdge can help you gain deeper insights into those factors that are affecting your customer’s loyalty, including satisfaction with products, services, and customer-facing aspects of your business. And then we can make recommendations on what improvements to make to help improve your company’s NPS score moving forward.
We Embrace Best Practices
LeadingEdge knows research. We embrace numerous best practices, including:
- Avoiding survey bias
- Avoiding survey fatigue
- Constructing easy-to-follow survey questions in a consistent way
- Localizing surveys for non-English speakers
- Achieving a statistically significant sample size
- Weeding out “speeders” and “cheaters”
- Mining results for optimal insights
Want to know what factors influence your NPS score? Want to know the NPS scores of your competitors? Or perhaps you can promote your favorable NPS score to your company’s advantage? Click on any of these related LeadingEdge services to learn more:
