Published: 22 October 2018
Net Promoter Score, or NPS as it's known, is a tool used by many businesses as a feedback mechanism to gauge brand advocacy. It’s beauty lies in its simplicity as it’s a single question that asks a brand’s customers ‘how likely are they to refer <the brand> to a friend or colleague’?
The better the customer experience on offer, the more likely it is that a brand will achieve a higher NPS score.
How does the scoring work?
Individuals are asked to rate how likely they would be to recommend a company to a friend or colleague on a scale of 0 to 10.
- A score equal to, or less than 6 makes the customer a ‘detractor’; these are people who are not ‘wowed’ by the experience and so are not likely to recommend them to others. They are the ones that the brand needs to work hard to make into positive advocates.
- A score of 7 or 8 from a customer makes them a ‘passive’. Passives are customers who are, overall, happy with the service/product they received but are not a raving fan. These are the ones that clever brands focus on first in order to get them to Promoter status - particularly if there is a high volume of them.
- ‘Promoters’ are those that score the brand 9 or 10 out of 10; these are the brand advocates, those that are happy to the point of posting about it on social media, telling their friends in conversation and recommending a brand to their colleagues at work.
A company’s Net Promoter Score is then determined by subtracting the number of customers who are ‘detractors’ from the number who are ‘promoters,’ and then dividing this by the total number of respondents. Passives therefore don’t count for you and only dilute your ‘promoter - detractor’ score.
NPS (%) = ((Promoters - Detractors) / Total Respondents (all scores)) * 100
What does this mean to you?
NPS essentially rates the health of a business and tells a customer, consumer or partner how well a brand is delivering and engaging with its customers.
If a company is currently receiving low scores, then focusing on the customer experience is the next step. Every touchpoint in a customer’s journey should be painless, straightforward and explained.
For instance, brands can ask themselves how helpful their website is… how easy is the path to purchase? Do they have a clear contact process or telephone number? Do they offer an online chat/ chatbot to help with minor problems? Does the website personalise the journey based on a user’s needs? How well does the brand look after the customer after the point of purchase?
In digital, solutions should be developed and designed to make the customers’ lives easier and if this can be delivered by offer exciting, inspiring and functional customer experiences and journeys, then a brand is more likely to achieve those highly sort after NPS ratings. The beauty of digital is in its ability to look after the customer from first search, to purchase, to advocacy on social media and through word of mouth.
Why is this NPS important to Sagittarius?
At Sagittarius, customer experience is at the centre of what we do both internally and externally. We try and add value to clients by offering thought leadership knowledge through a variety of blog posts, emails and events, in which we try to tackle trending topics, innovation and common problems.
To us, understanding client feedback and how likely they are to recommend us, enables us to grow and evolve as necessary to continue to improve the agency and our services.
Over the next 6 months, we will be continuing our NPS rating journey with our customers and hope to receive honest and valuable feedback which will allow us to continue to deliver outstanding digital solutions and be the best agency we can be!