Measuring customer advocacy with NPS

We've all ranted to family and friends about a bad customer experience.  Chances are, the worse the experience, the more people we told.  Statistics say that on average we tell 20 people about a bad experience but only three when we have had a great experience.

Do you know what your customers say about you?  Net Promoter Score is a great way to find out.

The Net Promoter Score (NPS) asks customers to rate your business on a scale of 0-10 how likely they are to recommend your business to a colleague, friend, or family member.

Your customers are then divided into three types: detractors, passives and promoters.

Detractors:  Customers who score you between 0-6 and are very unlikely to recommend your business.

In fact, they are likely to damage your brand by discouraging others from engaging your business.  It's essential these customers are followed up to remedy their bad experience.

Passives:  Customers who score you 7 or 8 and are considered neutral.

They were pretty happy with their experience and it is likely that their expectations were met, but not exceeded.  They are unlikely to rave about you and won't necessarily remain loyal to your brand.

Promoters: Customers who score you 9 or 10 and are likely raving advocates.

Their experience exceeded expectations, so they will recommend you to their friends and family and remain loyal to your business.

promoters drive your growth, so it's important to reward them and ensure they receive a consistently great experience every time.

To calculate your Net Promoter Score, use the below formula:
Percentage of Detractors - Percentage of Promoters = Net Promoter Score
This gives you a score between -100 and 100.

What your score means.

This higher the score the better; as it means more customers are likely to recommend you.  It's widely accepted that a score over 20 is favourable, over 50 is excellent and above 80 is world class.  Check out NPS benchmarks for your industry to get clearer on where you should be aiming.

The most important thing is to monitor your score and continually improve it.  Part of this will include developing processes to follow up customers, in particular those who gave a low score.

We can help you implement strategies to increase your Net promoter Score. 

"The purpose of a business is to create a customer who creates customers." - Shive Singh

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