What is the Net Promoter System℠?

The Net Promoter System and Net Promoter Score provide a simple and accurate measure of customer loyalty by asking only two short questions. Using them your business can prevent churn and rely on a more accurate predictor of growth.

          
Net Promoter Score vs Net Promoter System

Both of these terms get abbreviated to NPS, so things can get a little confusing. If you’re wondering which SatisMeter provides access to, the answer is both.

Net Promoter Score is a simple number, which is calculated by measuring responses to customer surveys. It’s a much clearer way to look at levels of customer satisfaction than traditional feedback methods. While a vital part of the overall system, the score alone has limited uses.

Net Promoter System refers to the set of practices that should be implemented both in collecting and reacting to your Net Promoter Score. These include tracking score changes over time, using customer feedback proactively, and closing the loop with your clients. When implemented well the Net Promoter System gives:

Overview

Gives you a clear view of what your customers are thinking and how you're likely to grow.

Churn Reduction

Reduces churn by turning unhappy customers into happy ones

Feedback

Provides your company with actionable feedback and ideas for improvement

Publicity

Promotes a positive company image and word of mouth publicity

Calculating NPS

So how does it work? Your Net Promoter Score is calculated on the basis of one simple question. Customers are asked to rank on a scale of 1 to 10 “How likely are you to recommend this service/product/company to your friends and colleagues?” On the basis of their answer, respondents are sorted into three categories:

Promoters - Responses of 9 or 10 are considered “promoters”, highly likely to stay with the company and praise it to others.

Passives - Customers who are generally satisfied as indicated by a score of 7 to 8, but may be swayed by competitors and are unlikely to give positive word-of-mouth publicity.

Detractors - Any respondent rating 0 to 6 is considered a “detractor”, they are not only likely to swap to a different service but could harm the company’s reputation.

The Net Promoter Score itself is calculated by the simple process of subtracting the percentage of “detractors” from that of “promoters”, while passive respondents are merely included in calculating the overall percentage.

The resulting figure can range from -100 to +100, with any positive score being considered good, and over 50 as excellent and an indicator of likely growth.

Why Measure NPS?

Unlike traditional market research and customer surveys, NPS asks only two easy questions of customers. This creates rapid feedback, high response rates, and data that can be easily understood and used.

At SatisMeter we think measuring and using NPS can benefit every company, that’s why we created a simple and effective platform for doing so. To learn more about NPS check out our detailed guide here.

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