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      Understanding NPS (Net Promoter Score)

      By understanding and leveraging NPS, you can cultivate stronger customer relationships and drive sustainable growth.

      What is NPS (Net Promoter Score)?

      Net Promoter Score (NPS) is a key metric used to measure customer experience and predict business performance by assessing the likelihood of word-of-mouth recommendations. It is a widely adopted method for evaluating customer satisfaction and loyalty, forming the foundation of many customer experience management programmes globally.

      The NPS Calculation

      To determine NPS, businesses ask customers a standard question:

      "How likely is it that you would recommend [business] to a friend or colleague?"

      Customers respond using a scale from 0 to 10, and they are grouped into three categories:

      • Promoters (9-10): Loyal enthusiasts who actively refer others.
      • Passives (7-8): Satisfied but unenthusiastic customers who are unlikely to promote or criticise the business.
      • Detractors (0-6): Unhappy customers who may spread negative word-of-mouth and harm brand reputation.

      NPS Formula

      The Net Promoter Score is calculated by subtracting the percentage of Detractors from the percentage of Promoters:

      NPS = % of Promoters - % of Detractors

      This score ranges from -100 (if all customers are Detractors) to +100 (if all customers are Promoters).

      What is a Good NPS Score?

      • Above 70: Outstanding – exceptional customer loyalty and advocacy.
      • 40 to 70: Great – strong customer satisfaction and positive recommendations.
      • 20 to 40: Good – a healthy level of customer approval.
      • 0 to 20: Neutral – more positive than negative feedback, but with room for improvement.
      • Below 0: Poor – more negative than positive feedback, indicating an unsustainable position.

      Industry Benchmarks

      NPS scores vary by industry. For example:

      • Telecommunications providers typically have an NPS around 0.
      • Activity providers and experience-based businesses often achieve scores above 60.

      Ready to leverage your NPS score? You can compare your NPS and Google Reviews to industry standards, set realistic KPIs, and improve customer experience with Yonder’s data-driven Benchmarks.

      Frequently Asked Questions

      1. How often should we measure NPS?
        Regular measurement (e.g., quarterly or after key interactions) ensures timely insights into customer sentiment. Learn how to use Yonder Benchmarks to help you assess your NPS score.
      2. What can we do to improve our NPS?
        Address customer feedback, enhance service quality, and engage with Detractors to turn their experience around.

      Have further questions? Contact support@yonderhq.com