Why Calculating Net Promoter Score (NPS) is Important for your business

In today’s business environment, no firm can afford to ignore what customers say to family, friends, and business associates about their services. It is estimated that it takes between 14 and 16 good reviews to reduce one bad review about a company’s services. With the stakes so high, every business ought to prioritize the customer experience. And calculating Net Promoter Score (NPS) is one way to do so.

NPS is a fast and easy way to find out how customers feel about your business. It involves asking your customers the question “on a scale of 0-10, how likely are you to recommend us to your friends and colleagues?” based on the ratings given, you can identify;

  • Promoters (score 9-10) – customers raving about your services to friends and family. 
  • Passives (score 7-8) – satisfied customers who are unenthusiastic about your services. These are more likely to be attracted to competitive offerings.
  • Detractors (score 0-6) – customers saying negative things about your business.

As it is much easier to keep existing customers than to find new ones, once these three groups of customers are identified, you can focus your efforts on retaining and pleasing your existing customers.

Plus, knowing your detractors allows you to find out what caused unhappy customers to have a bad experience with your company such that you can figure out ways to improve those pain points.

NPS is calculated by subtracting the number of detractors from promoters. Calculating NPS offers you a chance to gauge and understand how well you are meeting your customers’ needs and requirements, and helps you identify ways of improving the customer experience.

Scroll to Top