Net Promoter Score (NPS)

What is the Net Promoter Score?

No other metric has grabbed the attention of business like the Net Promoter Score (NPS). This simple measure is computed from answers to the question:

How likely are you to recommend brand X to a colleague using a scale from 0 to 10 where zero means not at all likely and ten means very likely?

The score is computed by taking the percentage of people who give a score of 9 or 10 out of 10 (the promoters) and subtracting the percentage of people who give a score of 6 or below (the detractors). Crucially, those giving a score of 7 or 8 are ignored (the passives).

Note: it makes no material difference if the scale is from 1 to 10 (as opposed to 0 to 10) because anyone giving a score of 6 or below is, in effect, a detractor.

 
 
NPS is a key indicator of overall customer sentiment and advocacy
 
Tracking NPS is important to determine trends in loyalty
 
A high NPS correlates strongly with future growth
 

Benchmarks for the Net Promoter Score

In business to business markets the average NPS is between 25 and 33. The following scores are reasonable benchmarks:
NPS: 30+

Types of companies typically achieving this score:

Service companies and companies with a high service content in their offer, high-tech companies, professional services companies, small and medium-size companies, good merchants and distributors.

NPS: 20 to 30

Types of companies typically achieving this score:

Manufacturing companies of all types, large corporates.

NPS: Less than 20

Types of companies typically achieving this score:

Energy companies, monopolists, chemical companies, commodity suppliers, most Western airlines.

 

[Video] How To Achieve a Leading NPS

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Caution in interpreting the Net Promoter Score

Be careful about low sample sizes because most people give scores of seven or 8/10 which means that the proportions of people giving scores of nine or ten out of ten and six or less out of ten can be based on quite small numbers of respondents. Sample sizes of 100 or more respondents are required to obtain robust measures of NPS.

 

Strategies for increasing the Net Promoter Score

For many companies the best way of improving the NPS is to work hard to increase the “likelihood to recommend score” amongst those giving a score of 7 or 8 out of 10. If a company or brand has more than 20% giving a score of 6 or below, there is something seriously wrong with the offer or the offer is being targeted to the wrong segment.

 
Speak to one of our NPS experts
Want to learn more about NPS and how it could benefit your business? Get in touch with one of our team to discuss your NPS measurement and tracking requirements and how it fits within our complete customer satisfaction and loyalty research solution.
 

[Infographic] How to Achieve a Leading NPS

We’ve carried out projects spanning the entire chemical industry, from commodities to specialty chemicals and from gases to the packages that contain them. To see the full list of areas we’ve researched in the IT industry, click the link below to view the graphic.

 

Our thoughts on customer satisfaction and NPS