What is a Net Promoter Score and How to Increase NPS

The Net Promoter Score (NPS) is a widely used metric for measuring customer loyalty and satisfaction. NPS is based on a single question: "How likely are you to recommend our company/product/service to a friend or colleague?" Customers rate their likelihood on a scale of 0 to 10, with 0 being "not at all likely" and 10 being "extremely likely." Based on their responses, customers are grouped into three categories: detractors, passives, and promoters.

• Detractors are customers who respond with a score of 0 to 6. They are generally unhappy with their experience and may spread negative word-of-mouth about the company.
• Passives are customers who give a score of 7 or 8. They are somewhat satisfied but not enthusiastic. Passives can easily switch to a competitor given the right circumstances.
• Promoters are customers who provide a score of 9 or 10. They are highly satisfied and loyal, often acting as brand advocates.

To calculate the Net Promoter Score, the percentage of detractors is subtracted from the percentage of promoters. The resulting score can range from -100 to +100. A positive NPS indicates more promoters than detractors, while a negative NPS suggests the opposite.

Increasing the Net Promoter Score is vital for businesses seeking sustainable growth and customer retention. Here are some strategies to help boost your NPS:

1. Focus on Customer Delight

Create more promoters by going beyond customer expectations. Identify areas to provide exceptional experiences. This may include personalized customer service, seamless interactions, or surprising customers with rewards.

2. Act on Customer Feedback

Listen to customer feedback from NPS surveys and other sources. Identify patterns and address areas for improvement. Show customers that you value their feedback by taking prompt action to enhance their experience.

3. Train and Empower Employees

Your employees play a crucial role in the customer experience. Invest in training programs to equip them with necessary skills. Encourage a customer-centric culture and empower employees to resolve issues promptly.

4. Foster Relationships with Promoters

Identify your promoters and engage with them. Show appreciation for their loyalty through exclusive perks or discounts. Utilize their positive feedback to create testimonials and referrals, which can attract new customers.

5. Monitor and Benchmark NPS

Regularly track your NPS to identify trends. Benchmark against industry competitors or companies known for exceptional customer service. Comparing performance will help you set goals and identify areas for improvement.

6. Continuously Innovate

Stay ahead by continuously innovating your products, services, and customer experience. Adapt to customer preferences by implementing feedback platforms and listening to suggestions. Continuous improvement ensures satisfaction and positive NPS growth.

Increasing your Net Promoter Score requires a comprehensive approach focusing on customer-centric strategies, continuous improvement, and employee engagement.