What is net promoter score?
A net promoter score is a way for a company to determine if its existing consumers would recommend a product or service to a friend. It’s often measured on a range of -100 to 100.
How net promoter score works
Net promoter score is often determined through surveys that will ask a company's customers how likely they are to recommend a product or service to others. Usually a range of 1-5, from strongly disagree to strongly agree, is applied and responses analyze accordingly.
Detractors, passives, promoters
Companies will often put consumer responses to net promoter score surveys in one of three buckets: Detractors, who express disappointment with a product and/or an unwillingness to recommend; promoters, who express enthusiasm for products and a desire to recommend; and passives, who sit somewhere in between.
The good, the bad, the ugly
Using the -100 to 100 range for net promoter score surveys, a company with a below zero score needs to have a look at its ability to satisfy customers, while an above 0 score is seen as better than average, and a +50 score is viewed as extremely good.
Why net promoter score matters?
It's easy data to get
Through online surveys net promoter score is fairly straightforward to determine, and the data can often be had with a simple question: Would you recommend this product to friends or family?
Driving up a company's net promoter score means have a consumer base that's working for it. When individual customers are doing the selling companies can shape marketing strategies that support loyal customers, such as discounts or free upgrades.
Key to growth
Regularly surveying customers for net promoter score keeps a company focused on loyalty and can position it for long-term growth. If a company keeps adding new customers while maintaining its relationship with existing customers it's much more likely to see opportunities for expansion.