Net Promoter Score
What is NPS?
Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a product or services to others.
Customers are asked a simple question; to rate how likely they are to recommend your venue. Responses are scored on a scale of 1 to 10, falling into three groups:
|9 or 10
||Loyal enthusiasts who keep buying from your organisation and encourage their friends to do so too.|
|7 or 8||Passives||Satisfied but unenthusiastic customers who can be easily wooed by the competition.|
|6 or lower||Detractors||Unhappy customers trapped in a bad relationship.|
Your official NPS score is the percentage of promoters minus the percentage of detractors.
Good NPS scores correlate to customer loyalty.
Temkin Group ran a study to analyse how the NPS relates to customer loyalty. From a sample of thousands of customers across 294 companies and 20 industries they found:
compared to detractors, promoters are more than five times as likely to repurchase from companies, more than seven times as likely to forgive companies if they make a mistake, and almost nine times as likely to try new offerings from companies.
Understanding what customers do and don't like about your organisation provides you the opportunity to improve, targeting limited resources at specific improvements with the overall aim of increasing your number of Promoters and decreasing (ideally eliminating) Detractors.
Other questions in Did You Enjoy That? will help target improvements by offering greater detail around the areas of dissatisfaction, giving you practical pointers for where to make changes that will matter to your customers.