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A net promoter score (NPS) is a benchmark used to measure customer satisfaction and loyalty. Companies send out short surveys (often containing only a single question) to customers to gauge how their brand, and products, are viewed. These answers are then collected and analyzed to calculate a company’s specific NPS.
Knowing your company’s NPS is important. It allows you to gauge how many existing customers love your product and are willing to give referrals, and where satisfaction may be lacking. Both metrics are important when it comes to your sales pipeline.
If customers are unhappy, you need to figure out why. What type of support are they missing? Are costs too high? Or do they simply require additional information to fully understand your product’s uses? If your NPS is low, it’s time to do some digging and get to the root of the issue before you start losing customers to your competition.
On the other hand, if your NPS is high, you should use those happy customers to your advantage. Build out a referral program and let customers know what benefits they can receive for referring new prospects. Collect testimonials to use in marketing materials and show the fact that your product is amazing and leaves users satisfied.
Every sales team should follow up with customers to help measure their NPS and keep it updated. The information collected from these surveys is invaluable.
Most companies send out a one-question survey to existing customers asking something along the lines of: “On a scale of 0 to 10, how likely are you to recommend our product to others?”
Answers are then divided into three groups:
To calculate your NPS, subtract the number of detractors from the number of promoters.
For example, let’s say you surveyed 100 customers: 60 were detractors and 45 were promoters. Your calculation would be 60 (detractors) – 25 (promoters) = 35 (NPS).
The goal is to actively grow the number of promoters and shrink the number of detractors as much as possible. This is why it’s important to consistently survey customers; calculating your NPS isn’t done once and then taken at face value.
The question you ask in an NPS survey should reflect your unique business model. You want to engage customers and receive meaningful feedback you can incorporate into future work.
Here are some examples of what you can ask:
You can ask open-ended questions about the likelihood of recommendations or target specific events to gauge satisfaction with certain experiences. A good rule of thumb is to also include a comment box at the end for any additional feedback the customer may want to send.
