Net Promoter Score (NPS)

NPS measures customer loyalty by asking how likely they are to recommend a company. Learn how it's calculated and how to use NPS.

What is Net Promoter Score (NPS)?

The Net Promoter Score (NPS) is a customer satisfaction and loyalty metric developed by Fred Reichheld in 2003. It operates on a simple principle - asking customers a single question:

"On a scale of 0-10, how likely are you to recommend Company X to a friend or colleague?"

Based on the score, customers are grouped into:

  • Promoters (score 9-10) - loyal enthusiasts.
  • Passives (score 7-8) - satisfied but unenthusiastic.
  • Detractors (0-6) - unhappy customers.

The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. For example, if 50% of respondents are Promoters and 10% are Detractors, the NPS is 40% (50% - 10% = 40%).

The beauty of NPS is this single metric provides a good pulse on customer satisfaction. It serves as an early warning signal if issues are developing. The open feedback received gives insights into specific problems and opportunities. This enables companies to take action to improve products, services and experiences.

Why NPS Matters in Customer Support

NPS is particularly relevant for customer support teams. After an interaction, asking "How likely are you to recommend our support to a friend or colleague?" reveals how the experience impacted satisfaction.

It provides quantitative data to track if changes are improving or hurting satisfaction over time. Goal setting also becomes easier. For example, a team can aim to increase NPS by 10 points in 6 months.

The qualitative feedback received gives targeted insights into pain points and bright spots. This enables support teams to focus improvements and training on specific areas that will delight customers.

In this way, NPS provides a straightforward methodology to measure, monitor and improve customer satisfaction. Support teams can directly strengthen loyalty and advocacy.

Key Takeaways

  • NPS provides a 0-10 metric for customer satisfaction and loyalty.
  • It segments customers into Promoters, Passives and Detractors.
  • The score is calculated by subtracting % of Detractors from % of Promoters.
  • It enables monitoring satisfaction over time and setting improvement goals.
  • Feedback reveals specific areas to improve and positive experiences to replicate.
  • For support teams, NPS identifies impact on loyalty and satisfaction after interactions.

Tracking Net Promoter Scores regularly gives an actionable pulse on the customer experience. It focuses efforts on the key areas that matter most to customers. This drives continuous improvements that build advocacy and loyalty.