The Net Promoter Score is a universal method that is used to assess the level of customer loyalty. It is a simple method whereby a question is posed where the respondent must provide their opinion from 1 to 10 for example. Based on these results, the data is used to provide a figure between -100 and 100 with a higher score being the desired outcome.

The Net Promoter Score or NPS seeks to identify the promoters, passives and detractors of a business. What a customer says about your business is really important, but what is more important is identifying ways to find out that information.

Word of mouth is something that can have a really big impact on a business as 92% of consumers believe friends and family more than advertising.

A promoter can be described as someone who answers 9 or above. They are loyal and enthusiastic and will actively promote your business. These types of customers become free advocates for your business and will recommend the product or service to others.

A passive customer is happy with the product or service, but they have not had a standout experience that causes them to recommend the business. The experience that they have is also not poor enough for them to discourage people from using a product or service.

Detractors are unhappy customers. They have had a negative experience and they would have answered 0 to 6 when asked about their experience.

When assessing the NPS, it is important to identify what went wrong with your detractor’s experience. For this, one should consider asking respondents what happened and for further details.

Reaching out to detractors is important, not only to stop them discouraging others, but to identify what it is that happened or what they disliked. It may also change their opinion of the business if they are being reached out to.

Research carried out found that just 33% of businesses were actively seeking out or collecting reviews. The value of finding out what your customer thinks or how their customer journey went is priceless.

Most businesses are in a market with a close competitor who may be doing things very similarly. One way to differentiate and grow their share of their market would be to assess the NPS and make improvements based on the feedback that is found.

For more information on how to assess your Net Promoter Score, please contact info@tellusfirst.ie.

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