Sometimes it is a popularity contest. And with a Net Promoter Score, or NPS, you can measure exactly how much your customers are recommending your business.  

What is an NPS?  

Net Promoter Scores were created by Bain and Co. Many companies use them to see how likely customers are to recommend a product or service to family, friends, or colleagues. They measure it on a scale from –100 to 100, and the higher the score, the more popular customers find the business.  

How do you calculate a Net Promoter Score?  

NPS scores divide your customers into three categories: Promoters, Passives, and Detractors. They are assigned depending on their response to a customer experience survey.  

You’ve probably been asked the question ‘How likely on a scale from 1 to 10 are you to recommend our business to a friend?’. While these surveys may seem pointless or irritating, these questions are actually used to calculate NPS. Therefore, they are important for businesses and useful for improving your customer experience.  

People who answer this question with a 9 or 10 are Promoters. They are loyal customers and will happily buy from you again and brag about you to others. Promoters are worth their weight in gold and give your business free marketing, so nurture these customer relationships!  

Those who answer 7 or 8 are Passives. They’re neutral on your business and probably won’t mention it to others, and are unlikely to consistently buy from you. It’s easier to sway Passives to Promoters, but they don’t negatively impact your NPS.  

If someone answers 6 or below, they are Detractors and are the biggest risk to your customer satisfaction rating. These customers likely won’t return and may badmouth you to others, turning away potential customers. Placating unhappy customers is crucial to reducing the number of Detractors you have.  

The NPS is calculated by taking away the total percentage of Detractors from the total percentage of Promoters. For example, if 60% of customers are Promoters and 20% are Detractors, your Net Promoter Score will be 40. Passives are not included in the calculation.  

What is a good Net Promoter Score?  

The higher your NPS, the better. But comparing your NPS to your industry standard and competitors is a good benchmark. For example, the telecommunications industry has an average NPS of 30-37, but at dbfb, we’re smashing that target with a score consistently above 75.  

Net Promoter Scores on average account for 20-60% of a company’s organic growth. The most successful companies have a strong NPS. So, making it a priority in your business strategy is a smart choice.  

To learn more about our services and why our customers are so happy, call 01604 673320 or email discover@dbfb.co.uk.