Net Promoter score (NPS®) is the most popular and proven metric for measuring and acting on customer loyalty data. The Net Promoter model is an approach in which you use your Net Promoter score to drive improvements in customer loyalty and ensure profitable growth. At the basic level, you can implement the Net Promoter score and model in four steps:
6832
DETRACTORS
482
OPEN CASES
6320
FINISHED CASES
2345
NEW PROMOTERS
1. ASK THE NET PROMOTER QUESTION
Getting to your Net Promoter score begins by asking one simple question: How likely is it that you would recommend us to a friend or colleague? By asking this question, and by categorizing customers based on their answers, you can get a clear measure of your company’s performance through customers’ eyes.
2. CATEGORIZE CUSTOMERS BASED ON THEIR ANSWERS TO THE QUESTION
Customers respond to the one question on a scale from 0 to 10; their responses indicate which category they fall into.
3. CALCULATE YOUR NET PROMOTER SCORE
Find the percentage of customers who are Promoters and Detractors.
Subtract the percentage of Detractors from the percentage of Promoters.
For instance, suppose 100 customers respond to your survey as follows:
NPS = % of Promoters – % of Detractors
NPS = 25% – 35%
NPS = -10%
As you begin to implement the Net Promoter model, you will work to increase the number of Promoters and decrease the number of Detractors, monitoring how the strategic and tactical changes you make move the metric.
4. IMPLEMENT THE NET PROMOTER MODEL
Because a Net Promoter program is not like a traditional customer satisfaction program, simply measuring your NPS does not lead to success. Instead, you must follow the associated Net Promoter model. You must gain leadership commitment. You must have the right software and business processes in place to deliver real-time information to employees, so they can act on customer feedback and achieve results.
MORE THAN A NUMBERS GAME
Net Promoter programs are not traditional customer satisfaction programs, and simply measuring your NPS does not lead to success. Companies must follow an associated discipline to actually drive improvements in customer loyalty and enable profitable growth.
They must have leadership commitment, and the right software and business processes in place to deliver real-time information to employees, so they can act on customer feedback and achieve results.
The ultimate test for any customer-relationship metric is whether it helps the organization tune its growth engine to operate at peak efficiency. Does it help employees clarify and simplify the job of delighting customers? Does it help them identify and engage their best customers? Does it allow them to compare their performance to the best from week to week and month to month? The notion of Promoters, Passives, and Detractors does all this, and helps companies turn into Net Promoter stars
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