What is a good Net Promoter Score®?
Having run your NPS® survey, and asked your customers the question – “How likely is it that you would recommend our [company] [product] [service] to a friend or colleague?” – you’ll want to know what constitutes a good NPS score.
However, before you can do that, you’ll need to calculate the score itself.
How to measure NPS
Once you’ve collated your responses, your Net Promoter Score is calculated by working out the difference between the proportion of promoters and detractors, to generate a score of between -100 and 100.
Depending your data size there are two main ways of doing this:
- A simple manual calculation – for when you have a small number of responses
- The NPS Excel formula – for a larger data set, which would be more time consuming to calculate manually
However, some NPS tools, including our very own survey software, include a built-in Net Promoter Score question, that will collect data that’s automatically processed to show you the correct score via our reporting tools.
How do I know if I’ve achieved a good NPS score?
In simplest terms, a good Net Promoter Score is technically anything above zero, since this implies that you have more promoters than detractors. A score above 50 is viewed as excellent and above 70 outstanding and rare. Given that there isn’t a universal standard for NPS, most companies will compare their scores to other businesses in their industry.
When the NPS question needs to be contextualised
Given that the foundation of the NPS question is reliant on recommendation to friends and family, there are some organisations (and individuals) where it could be a less appropriate question to ask. For example, if your product or service was very specialised and a respondent felt that their friends or colleagues would be unlikely to benefit from it, they may decide to forego recommending it, even if they were satisfied. This could apply to healthcare organisations where the service provided is of a sensitive nature or causes unavoidable discomfort.
This is not to say that NPS should not be used in these circumstances, but that a low, or even negative score may not be “Bad”. Context is the key.
In such a situation following up your question with an optional comment box asking for the reasons behind the score given or just for general comments can be useful. Another way of adding context is to purchase benchmark reports from consultancies and agencies that do research into this on a per-industry basis. These are often expensive but can offer value.
While there will always be exceptions as we’ve discussed, for most organisations the benefit of a strong NPS score is straightforward and the advantages wide ranging. These could include anything from helping to grow your customer base, to increasing the number of products and services that existing customers buy from you.
If your organisation runs regular customer feedback surveys or customer satisfaction questionnaires, collecting NPS data can be an extremely useful part of your strategy, enabling you to better track your customers overall contentment levels.
A great NPS survey example can be provided by one of our case studies, which highlights the work that our client IKEA did to better engage and improve their customers’ satisfaction levels. Following the deployment of their strategy IKEA’s Net Promoter Score jumped from 25 to 70.
Similarly, NPS data provides the foundation to other surveys such as the customer loyalty survey. By measuring the customers’ willingness to recommend a business to a friend or colleague, NPS data provides an essential insight into that customer’s loyalty.
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NPS®, Net Promoter® & Net Promoter Score® are registered trademarks of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld.