The Net Promoter Score: Revealing Customer Satisfaction
Before buying a product or a service, most people seek recommendations. According to the Nielsen’s Global Trust Report on Advertising, 83% of respondents said they rely on recommendations from family and friends more than any other form of advertising.
More than ever, creating a good reputation is necessary to maintain a business. But how? The net promoter score is an important tool for those who want to understand client satisfaction with a particular product or service.
What Is The Net Promoter Score?
“How likely are you to recommend our company to a friend?”
The net promoter score is the company’s leading metric that represents the overall client experience. As this score reflects the weaknesses and/or strengths of a business, it also aims to enrich and/or retain the company’s relationship with clients.
It consists of a satisfaction survey that asks for clients’ feedback about their overall service or set of services. This survey offers a rating scale of 1 to 10:
Did you know that Zoox Smart Wi-Fi has the net promoter score integrated into its platform? Stream search among connected users on your WiFi and raise insights to enhance your consumer experience.
How Can The Net Promoter Score Help My Business?
The net promoter score helps the company to decide if they need to improve the client experience.
The score = (Number of Promoters – Number of Detractors) / (Number of Respondents) x 100
Imagine your company had 2,000 clients last year. So, you sent the satisfaction survey to the 2,000 clients, but only 500 clients completed the survey.
Three hundred and fifty responses represented your promoters (those who voted either 9 or 10). One hundred responses represented your passives (those who voted either 7 or 8). Fifty responses represented your detractors (those who voted from 1 to 6).
So, the calculation is the following: 350-50 / 500 x 100 = 60. Is that a good score?
So, What Is A Good Score?
The net promoter scores vary by industry. In theory, any score that is higher than your competitors’ is a good score. However, there are industry averages.
Industry Average Examples:
- Department & Specialty Stores = 58
- Hotels = 39
- Software & Apps = 28
- Health Insurance = 18
- Internet Service = 2
For more industry examples, please refer to this infographic by NICE Satemetrix.
If You Want to Score High, Embrace a 10-to-1 Philosophy
More people are quick to share a negative experience than a positive experience with others. According to a Colloquy study, 75% of people would share a negative experience with friends and family. In contrast, only 42% of people would recommend something based on a positive experience.
Some average net promoter scores are very low like the internet service industry. However, if you strive to balance every negative experience with ten positive experiences, you will score a high net promoter score.
By knowing your score, your company will have clarity and can plan goals to improve client satisfaction.