Net Promoter Score: The Power Behind a Single Number

As part of my Scale Up class, we were required to send a survey out to our customers.

The Simple Survey

• On a scale of 1 to 10, how likely are you to recommend MEDiAHEAD to a friend or colleague?
• Why did you choose that score?
• How can we improve?

With a short questionnaire like this, customers are also more likely to answer the survey. The number of questions you add leads to a decrease in responses.

The survey is important because it’s a key metric used to calculate the Net Promoter Score (NPS), a widely used measure of customer loyalty and satisfaction. One of the driving factors of any business, no matter how large or small, is customer satisfaction.

By analyzing Net Promoter Scores, companies can pinpoint areas where they need to improve customer experience, service, or product quality. It also allows you to track customer satisfaction over time, enabling you to measure the effectiveness of changes and improvements.

There are three categories of customers: promoters, passives and detractors.

The NPS scores are helpful to categorize customers into these three groups.

The first step is to disregard all the passives. Next, calculate the percentages for both detractors and promoters by dividing the number of detractors by the total number of responses. Do the same for the promoters. Now subtract the detractor percentage from the Promoter percentage to get your NPS.

For example, say you surveyed 100 customers, and the breakdown was 20/40/40 Detractors/Passives/Promoters

• Detractors = 20 divided by 100 = 0.2 or 20%
• Promoters = 40 divided by 100 = 0.4 or 40%
• NPS Score = 40% – 20% = 20%

This is your net increase from recommendations. You can expect to see 40% of your customers recommend you, but that number must be offset by the 20% who are telling people NOT to use your company.

It’s always a good idea to send this survey out once a year to benchmark your progress, we all want happy customers!