NPS

What it means

NPS, the Net Promoter Score, is a simple measure of customer loyalty. It rests on a single question: how likely are you to recommend us to a friend or colleague, on a scale from 0 to 10. It is used as one of the key performance indicators in services and sales.

Answers fall into three groups. Scores of 9 and 10 come from promoters, 7 and 8 from passives and 0 to 6 from detractors. NPS is the percentage of promoters minus the percentage of detractors, so the result ranges from minus 100 to plus 100.

The number itself is meaningful mainly when compared over time and with similar companies in the sector. It is complemented by an optional question asking why the customer gave that score. The answers show what works along the customer journey and where problems arise.

How it works in practice

We send the survey at clearly chosen moments, such as after the annual accounts are finished, after the tax return is filed, or once a year to all clients. We store the answers in the CRM against the specific client so that we can respond individually.

We contact detractors personally within a few days and ask what happened. Often it is one specific experience that can be put right. This reduces client churn, because a dissatisfied client whose problem is solved often stays longer than a satisfied one.

Promoters, in turn, we ask for a review or referral, as they are the cheapest source of new customers. We track NPS alongside customer lifetime value, and it can also be an objective in the customer support team’s OKRs.

What to watch out for

NPS is easily skewed: if you send it only to happy clients, ask right after a pleasant moment, or staff ask customers for high scores, the number loses its meaning. The method must therefore stay the same, or results cannot be compared.

With few responses a single vote can move the score by dozens of points. A small company should therefore read the comments more than it watches the number, and avoid major decisions based on a single quarter.