Saturday, 30 March 2013

A customer indicator you must measure: Net Promoter Score

Most customer satisfaction surveys are complex and multi-faceted and sometimes you can't see "the wood for the trees".  If you only measure one thing about customer satisfaction then you should measure your Net Promoter Score (NPS).

NPS divides your customers into 3 groups:
  • Promoters - Score 9-10 - loyal enthusiasts who will refer others to you
  • Passives - Score 7-8 - satisfied but unenthusiastic
  • Detractors - Score 0-6 - unhappy customers who will damage your brand through negative word of mouth
The NPS calculation is very simple:  NPS = %Promoters - % Detractors

Market Leaders would be expecting an NPS of 70%-80% depending on the industry sector.

Ken Thompson (aka The BumbleBee) blogs about bioteams, virtual collaboration and business simulation at www.bioteams.com