How To Measure Customer Success with a Net Promoter Score Scale

As businesses, we strive daily to serve our clients and customers. But how do we find out the real and honest thoughts of our customers when it comes to how they perceived their experience with us?

The Net Promoter Score (NPS) works as a proxy to allow us to quantifiably gauge the level of customer experience we provide. But how do we go about calculating the Net Promoter Score for your company or business unit?

It’s super simple – here’s how!

Before we calculate our Net Promoter Score we need to ask our clients one simple, yet powerful question.

On a scale of zero to ten, how likely are you to recommend our business to a friend or colleague? 

The NPS question

Here is how we bucket the responses:

Customers who score you a 0-6 are considered a DETRACTOR. These customers were left wanting more and are unlikely to return to your businesses unless their issues are addressed. Moreover they are likely to tell up to 20 other people about their bad experience. Yikes! These are the ones that are churning!
Customers who score you a 7-8 are considered PASSIVES. These are customers who we didn’t leave either a bad nor particular good impression with. We did “okay”!
Whilst those who score you a 9 or 10 are your PROMOTERS. These are the customers that are going to fly the flag for our business. We delivered a great experience and they are thrilled. Now is the perfect time to ask them for referral to their networks.

Your Net Promoter Score is then calculated using the following formula.

The Score will be between -100 and 100.

Let’s take an example:

You survey 100 customers.

95 of those are Promoters

2 are Detractors

3 are Passives.

Your Net Promoter Score will be 95%-2% = 93.

A very high score!

P.s. GroHawk can help you benchmark your score so you can see how you fare against other companies in your industry!

Check out our NPS calculator here to understand how this works 

Now that we know what the NPS is and how it is calculated, here are the key features that link the NPS and its influence on our customer success:

NPS provides an insight into the raw thoughts of your customers

A key feature of the NPS is that the respondent is unable to be influenced by the way the question is asked nor is it personalised. Therefore the NPS is a very effective way of gathering the honest perspectives of your customers and consequently can be seen as a measure of real customer success.

Use the NPS score to inform your next steps

The easy to interpret nature of the NPS means it immediately informs what your next course of action needs to be around customer success. A high NPS should leave you wanting to understand why you achieved such a score and what needs to be done to maintain it. A low score on the other hand, may leave you inclined to turn your attention to Service Recovery and how to resolve the issues raised and what caused them in the first instance.

In its entirety, the NPS is growing in credibility and rightly so with its role as a measure of customer success. Gathering and calculating your NPS however is only the first step. Simply collecting such data and not acting upon it can be critical as customers will feel they are not being listened to.

It’s imperative that you act to drive service recovery amongst your detractors whilst find ways to drive referrals from your precious promoters.

[Tweet “Don’t delay the inclusion of the NPS in your business. Start now with a small sample of customers and before you know it every customer will be providing you with the invaluable information any business needs to make the most strategic and profitable business decisions possible.”]

GroHawk automatically segments your NPS responses and drives the necessary actions – whether that is service recovery or pushing for a referral or Google Review. Book your demo call with our team today. 

What is NPS?

NPS stands for Net Promoter Score. The score measures the relationship of companies with their customers. It tells them the extent to which their customers are willing to recommend them to others.

How to benefit from NPS?

NPS is an excellent tool to aid in decision-making. You can make significant improvements based on the score. If the score is low, you work on delivering the best you can and improving customer experience. If the score is good, you know what you’re doing works well for you, and you can provide similar or even better services to others. It also helps you recognise possible brand ambassadors for your company.

How to read the NPS score?

Reading NPS scores is simple. The score is a whole number in the range -100 to +100. If it’s below zero, you have to work on making improvements. If the score is above zero, you’re doing well, and if it is above fifty, it means you’re doing exceptionally well!

 How critical is NPS to real customer success?

There’s a reason why big companies rely on NPS scores. It tells them how good or bad their experience was with the company. Real customer success is when you provide the services up to their satisfaction and more than that. NPS tells if you’ve been successful in doing so or not. 

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