What is 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:
| SCORE |
CATEGORIES |
DEFINITION |
|---|---|---|
| 9 or 10 |
Promoters |
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.
What is a 'good' NPS score?
The available range for NPS is -100 to +100 so any score above 0 could be seen as 'good' as it means your organisation has more promoters than detractors.
Looking at some non-arts stats from 2017, you may be surprised by the NPS scores some household names achieved.
What is a 'bad' NPS score?
A score below 0 indicates more detractors than promoters so you have some work to do.
How is it useful?
Good NPS scores correlate to customer loyalty and can be used as a predictor of business growth. When your company’s NPS is high (or, at least, higher than the industry average), you know that you have a healthy relationship with customers who are likely to act as evangelists for the brand, fuel word of mouth, and generate a positive growth cycle.
Conversely, if your score is low or in decline, this indicates trouble ahead.
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.
NPS over time
Monitoring your NPS score over time offers a barometer of overall performance and the ability to identify fluctuations. Looking back, you may be able to align these with times of organisational change; giving insight into how your customers have reacted perhaps to a new programme or change in prices or facility upgrade.
Driving Improvements
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 your survey template 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.