The NPS is a customer loyalty measure that tells you how likely your customers are to recommend you.
Every time one of your customers completes your survey, they are asked:
“On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?”
In answering this question, customers fall into one of three categories:
- Promoters (score 9-10) are loyal customers who will keep buying with you and are very likely to refer others.
- Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to switching to your competitors.
- Detractors (score 0-6) are unhappy customers who can damage your brand through negative word-of-mouth.
Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).
Servmetrics averages the responses from all your customers and reports your real-time NPS score on your dashboard:
The NPS you see on your dashboard is expressed as an absolute number lying between -100 and +100. If you have for example 25% Promoters, 55% Passives and 20% Detractors, the NPS will be +5.
Based on the global NPS standards, any score above 0 would be considered "good" (50 and above being excellent, while 70 and above is considered "world class").
Simply put, any positive score means that you have more promoters (happy customers who are willing to promote you) than detractors (unhappy customers and potential negative word-of-mouth).
Want to find out more? For a more detailed explanation about NPS and customer loyalty, please check out this article.