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What is Net Promoter Score, and do you need one?

What is Net Promoter Score?

Net Promoter Score® is a standardised metric that businesses and other organisations use to measure customer satisfaction.

It’s based on the idea that the key indicator of satisfaction with a product or service is whether a customer will recommend that a friend, family member, or colleague use or purchase it.

 It does this through a standardised question and answer format, that asks "How likely is it that you would recommend [this product] to a friend or colleague?" and asks them for a number between 1 and 10. The responses are then collated and calculated to give an overall score. This is done by grouping the respondents as follows – those who answered between 1 and 6 are labelled “detractors”, those answering 7 or 8 are labelled “neutral” and those answering 9 or 10 are labelled “promoters”. By working out the difference in proportion of promoters and detractors, a score between -100 and 100 is calculated. SmartSurvey includes a specific question type that will do the calculation automatically.

Do I need to collect Net Promoter Scores?

If you’re looking to track your level of customer satisfaction, then collecting NPS can form a very useful part of that strategy. The standardised format has the advantage of being something that customers are likely to be familiar with and also allows you to concentrate on other aspects of the customer satisfaction program than worrying about specific question formats.

In isolation, though, it can be a little over-simplified. Because the results come back as a single number, it doesn’t really tell you whether a score is good of bad for the industry or sector you operate in and also tells you nothing about reasons behind the score, so it’s best to combine a net promoter question with extra information so that you can determine more about the customer experience.

This can be a simple comment box, asking the respondent to explain the reasons behind their score, using custom variables or contact data to fill in details of that customer’s recent transactions, or a combination of the above.

Setting this up with SmartSurvey is simple, so you can have a Net Promoter-based customer satisfaction survey set up in a few minutes and start collecting data straight away.
