As Oklahoma sage Will Rogers once put it:
“Get someone else to blow your horn, and the sound will carry twice as far.”
Though organizations big and small employ various customer feedback metrics, there’s one that stands out from among its peers — the Net Promoter Score (NPS).
What is a Net Promoter Score (NPS)?
A Net Promoter Score (NPS) is a feedback metric that aims to gauge how likely past customers are to recommend or refer a particular company to another person.
How is a Net Promoter Score determined?
A Net Promoter Score (NPS) is the result of asking customers a single question:
“On a scale of 0-10, how likely would you be to recommend this company to others?”
Depending on the value given, a customer can be classified as:
- 0-6 - a detractor: someone who may actually dissuade someone from doing business with a specific company
- 7-8 - a passive customer: someone who will likely continue to utilize a particular company for a good or service but isn’t enthusiast enough to go out of their way to recommend them
- 9-10 - a promoter: this is a loyal customer who would highly recommend the company to others, even to the point of affiliating their own brand to this brand
The Pros & Cons of Using Net Promoter Score
Pros of Using Net Promoter Scores (NPS)
- It’s standardized for ease of comparison. Because an NPS relies on a single question and simple 0-10 scale, customers can easily compare companies.
- It favors customer retention over one-and-done transactions. Because an NPS gauges customer loyalty over a singular aspect of the business relationship, it makes comparing companies easy for those shopping for a new business partner rather than a specific product or service.
- It gauges enthusiasm over mere satisfaction. Most business transactions are satisfactory—few foster enthusiasm for the brand. NPS helps shoppers isolate merely adequate companies from those whom customers enthusiastically promote.
Cons of Using Net Promoter Scores (NPS)
- It may not tell the full story. Just because someone is a particular brand champion, this person may have limited experience with the brand’s whole swath or products and services.
- It’s more brand-based than providing details about specific products or services. An NPS reflects more of a person’s view of the brand as a whole—focusing less on a particular product, service, or even division of the organization.
- The rating may be harder to digest initially. Though a simple question gauges an NPS (“how likely are you to recommend the brand to others?”) and a 0-10 scale, even understanding this metric may be more complicated for some than specific customer satisfaction data or testimonial quotes.
In Conclusion: Why Do Many Prefer the Net Promoter Score (NPS)?
The Net Promoter Score’s beauty is in its simplicity—asking, “Would you recommend this company or not—and to what degree?”
Yes, for detail-oriented shoppers, such sticklers would be hard-pressed to derive specific examples of why or why not one would recommend a company based on an NPS rating alone. Still, these details factor into the final numeric rating—much like a star-based rating or a number of thumbs up. The Net Promoter Score is hard to beat for shoppers looking to cut to the chase and find a company they can trust.
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