Net Promoter Score®, also known as NPS®, is a type of customer survey and market research metric that was originally invented by Fred Reichheld, Bain & Company, and Satmetrix Systems in 2003. It specifies how likely customers are to recommend your company to others and, in turn, help you grow. This proven metric transformed the business world and now provides the core measurement for many customer experience management programs.
The net promoter score is calculated by asking customers to rate their likelihood of recommending your company on a scale from 0-to-10. By subtracting the percentage of detractors (customers who indicate that they would not recommend you) from promoters (those who give you a nine or ten), then multiplying that difference by 100, so the final net promoter scores can range from -100 to 100.
So there are 3 different types to consider when measuring net promoter score:
- 9-10 (Promoters): Customers who respond with nine or ten (promoters) are considered loyal enthusiasts and will continue to buy from you.
- 7-8 (Passives): Those who respond with a seven or eight (passives) may be satisfied customers but they’re vulnerable, having indicated that they would not recommend your company at this time.
- 1-6 (Detractors): And those rates six or lower (detractors), well they can damage the reputation of your business, and they can cost you money.
# Calculating the Net Promoter Score (NPS)
Calculating NPS is simple. Add up the percentage of customers who are Promoters (nine or ten) and subtract the percentage that are Detractors (six or less). The net promoter score will range from -100 to 100, with 0 being neutral.
NPS = % Promoters - % Detractors;
# How to measure Net Promoter Score (NPS)
How measurement of the net promoter score works? One of the best ways to determine your net promoter score is by using a survey. NPS surveys are mostly sent out via email, or in-app popups and ask customers whether they would recommend your business to a friend or colleague on a scale from 0-to-10 (not at all likely to very likely).
NPS popups should be shown at a time when the customer has successfully checked out taken action. For example, an NPS popup can appear within 24 hours of signing up for your digital service or making the first purchase. However, if you are running a business where you have long-term customers like SaaS businesses, you should repeat your NPS surveys in a defined cycle of 2 months for example. This will also help you to identify trends in your customer satisfaction and thus show if you're doing things correctly or not.
Some Example NPS Survey Questions you could use:
- How likely are you to recommend our company/product/service to a friend or colleague?
- Please rate your experience.
- Would you recommend us/our service/our company to others?
You can use tools like Sleekplan's in-app popups to measure your net promoter score. Sleekplan also allows you to create different popups for different audiences based on customer segmentation. Also, it handles the recurring popup delay automatically. Try Sleekplans' NPS feature (opens new window).
# How to improve Net Promoter Score (NPS)
There are many different starting points to improve your Net Promoter Score. However, they all share the same idea: Improving your customers' satisfaction will positively influence your NPS score. Hotjar (opens new window) has published a great article about some strategies on how you can improve your company's net promoter score.
They are covering 6 strategies to improve your NPS:
- Close the loop with your customers.
- Rally the company around NPS.
- Hold regular meetings to talk about NPS.
- Use NPS feedback to train staff.
- Conduct root cause analysis.
- Make structural changes and see what works.
# What else can you do with Net Promoter Score (NPS)
You can use net promoter score to find out how your customers feel about your company. It's not only a great way of measuring customer satisfaction but it also allows you to identify issues and opportunities for improvement in an easy and fast manner. Also beyond the Rating 1-10, you can ask your customers an unstructured question: (e.g. Describe the main reason for your vote). Those comments can help you to identify the main reasons for a low net promotor score and improve your NPS according to your users' feedback. Ready to enhance your feedback cycle with NPS?
Sleekplan (opens new window) offers a net promoter survey tool, that helps you to set up NPS surveys in no time. Just sign up, embed the widget code on your website, and start collecting net promoter scores. Also, you can create different net promotor score surveys for each of your customers' segments with the user-friendly net promotor popup designer and start to receive feedback from your users immediately.