Net Promoter Score: The Ultimate Question
Sunday, June 26th, 2011How likely is it that your customer will give your name out as a referral? This is the “ultimate question.”
Net Promoter Score is a client loyalty survey that centers on just a single question. How likely are you to recommend something to a friend or colleague? This something could be a company, a brand, a product or a specific service.
Net Promoter Score was created by Satmetrix, Bain & Company, and Fred Reichheld. The concept was first popularized through the book “The Ultimate Question”, and has since been used by many as the standard for measuring and improving customer loyalty.
The responses are collected on a 0-10 scale where 0 is extremely unlikely to recommend and 10 is extremely likely to recommend. Someone giving a 9-10 score is considered a promoter. Someone giving a score of 7-8 is considered Neutral (or Fence Sitter). A person giving a score of 0-6 is considered a Detractor. “Detractors” are unhappy customers that feel trapped in a bad relationship.
The Net Promoter Score is simply the percentage of Promoters less the percentage of Detractors. Knowing your percentage is an easy way to understand how you stand in your customers’ eyes.
Outstanding firms will have 50-80% scores. Average firms seem to fall into the 5-10% range. Poor firms will have negative scores.
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