The Net Promoter Score is a customer feedback measurement system that has grown rapidly among major industries since it was created in 2003. This system was developed by the founder of Bain & Company’s loyalty practice, Fred Reichheld. What it measures is customer satisfaction and allows companies to find and capitalize on what makes their customers happy and also fix what make their customers unhappy.
How Is The Net Promoter Score Calculated?
This score is extremely easy to calculate and is based on your customers answers to the golden question, “How likely would it be that you would recommend our company to a colleague or friend?”. Once this question is answered, customers are placed into a 0 (not at all likely) to 10 (extremely likely) scale. This scale segments customers into 3 groups – Detractors, Passives, & Promoters – that are all ultimately targeted and responded to differently. To find your score you simply subtract the percentage of detractors from the percentage of promoters and wa-la you have your Net Promoter Score.
What Do Your Different Customer Groups Mean?
This group of customers are those who have expressed a bad experience and therefore have expressed that they would not recommend your company. They fall between 0 and 6 on your Net Promoter Scale. If the issue is not resolved these customers could attribute to bad word or mouth, and negative conversation about your brand. The opportunity with detractors is to find out why they are unhappy and make necessary changes to your current practices to fix what happened and prevent it in the future. The key to recovering detractors is proactive customer service that is continuously developed with this system.
Your middle group, the passives, falls between 7 and 8 on your Net Promoter Scale. These are your neutral customers that have an indifferent feeling about your brand. Although this group will usually not attribute to negative conversation, they also do not become promoters of your brand on their own. Your company should work to influence passives to become promoters by finding out why they are indifferent and changing that indifference to delight.
This customer group fall between 9 and 10 on your recommendation scale. These are your brand advocates that have been delighted by your brand. They are the customers that are consistently recommending your company and act as a new customer generator. Your company’s main focus with your promoters should be to reward and thank them for their recommendations. You should also learn why they are so delighted and capitalize on your findings. Chances are what makes them happy is a key ingredient to what influences others to love your brand.
Collect Net Promoter Score Feedback With Video Testimonials:
Now that you know what a Net Promoter Score is, the next question is how will you gather the information from your customers to start building yours? One way to collect the content that influences your NPS is through video testimonials. Simply add the golden question to your prompt when asking for customer feedback and chances are you will receive some quality content. It is easy to gather a quick rating from your customers about where they feel they fall on the scale, but that doesn’t give you the detailed feedback that helps you promote change. By adding this prompt among other questions to a video testimonial collection form you are able to dive deeper into the meaning behind your NPS. It is also easier for some customers to better describe their experiences, negative and positive, through video because they can put it in their own concise words. Learning from the videos your detractors post by contributing it to your proactive customer service, and capitalizing on the videos your promoters post by showing them to the world will allow you to make the most out of your Net Promoter Score.
How does your company go about collecting customer feedback to develop a Net Promoter Score? Comment below!
Posted in: Reputation Management