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NPS

NET PROMOTER SCORE

The Net Promoter Score®, is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others. It can give insight into the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the brand.

Customers are surveyed on one single question. They are asked to rate on an 11-point scale the likelihood of recommending the company or brand to a friend or colleague. “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?”

Based on their rating, customers are then classified in 3 categories: detractors, passives and promoters.

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  • Promoters (score 9-10) – Loyal customers who will keep providing revenue and promoting the company
  • Passives (score 7-8) – Customers who may move to competitors
  • Detractors (score 0-6) – Unhappy customers who can damage your brand
DETRACTORS
‘Detractors’ give a score lower or equal to 6. They are not very happy by the product or the service. They, with all likelihood, not buy again from the company, and could potentially damage the company’s reputation through negative word of mouth.
PASSIVES
‘Passives’ give a score of 7 or 8. They are somewhat satisfied but could easily switch to a competitor’s product or service if given an good opportunity. They probably won’t damage company reputation with any negative word-of-mouth, but are not thrilled enough about your products or services to actually promote them.
PROMOTERS
‘Promoters’ answer 9 or 10. They really love the company’s products and services. They are the most likely repeat buyers, are the enthusiastic evangelist who often refers the company products and services to other potential buyers.
THE NPS SCORE = (% OF CUSTOMERS WHO ARE PROMOTERS - (MINUS) % OF DETRACTORS)

The Net Promoter Score (NPS) is determined by subtracting the percentage of customers who are detractors from the percentage who are promoters. What is generated is a score between -100 and 100 called the Net Promoter Score. At one end of the spectrum, if when surveyed, all of the customers gave a score lower or equal to 6, this would lead to a NPS of -100. On the other end of the spectrum, if all of the customers were answering the question with a 9 or 10, then the total Net Promoter Score would be 100.

There are some issues with using a Net Promoter Score. For example, people’s attitudes to a service may change over time, and if the company or product being asked about has a social stigma, people may not wish to recommend it, even if they like it.

Please feel free to request an estimate or contact us to discuss your NPS goals.

*The Net Promoter Score, or NPS®, was developed by Fred Reichheld, Bain & Company, and Satmetrix in 2003. (See The One Number you Need to Grow). It assumes that all customers can be divided into three categories: Promoters, Passives, and Detractors.

The advantage of NPS is that it captures a key customer opinion with a single question.

However, at Insight Surveys we deliver more than the NPS.

We’ll ask the “why” questions behind the score to really uncover and quantify what your company does well and what it can fix or improve: be it a product issue, support, or a logistics issue.