Net Promoter Score often called as NPS is the golden standard to be taken in account when we talk about customer experience. Developed in 2003 by Bain and company, it’s now used globally to understand how their target audience feels about their product or services. While going through a survey, NPS is calculated through a very simple question: “How likely is it that you would recommend us (company/ product/ services) to a friend or a colleague?”

This one simple question helps you understand whether your target audience likes you or not, How? Let me break it down for you.

When you publish a survey with NPS metric in it (that includes above question) the respondents rate you from 0 (Not at all likely) to 10 (Most Likely), based on their selected scores they fall into 3 major categories:

a. Detractors: giving you score from 0 to 6, these are some unhappy highly unsatisfied customers, who are disappointed and will most certainly never use your services or product again. These are the people who will not only discontinue their professional relationship with you but will also give you negative reviews on different portals and will most certainly refrain others from using your services too. These respondents can potentially damage your brand image and market presence by talking negative about you.

b. Passive: giving you scores from 7 to 8, these are passive people who are neither satisfied nor dissatisfied with your services. They may be happy with what you offered to them but not too happy to promote you or suggest others to try your product or services.

c. Promoters: giving you score from 9-10, these are the happy customers whom you have impressed highly. These are loyal customers who will support you and will also promote you to others.

So how do you calculate the score from raw data collected from above mentioned respondents, how do we get an exact no.? it’s simple: once you have collected all the data, just subtract the percentage of Detractors from the percentage of Promoters.

Example: Suppose if 25% of respondents are Detractors, 15% are Passives and 60% are Promoters, your NPS score would be 60-25 = 35.

Companies and famous brands like Apple use NPS matric to calculate their customer loyalty, also, it helps them to figure out their further business strategies. These companies collect NPS data and utilise it to fuel and lead their marketing strategies, observe best customer success practices and to certain extent for their product development too.

There are various reasons to consider the importance of analysing the data extracted through the NPS metric. At Dropthought we simplify this process for you, we help you understand all the terminologies and show you how it’s done. Our case studies clearly show how NPS can help you improve your market impact and overall performance.

These days while it is important for a business to maintain a brand image by offering better services to those happy and enthusiastic customers, it is equally important to maintain that flow while also ensuring to build a strategy flexible and strong enough to convert the detractors into the promoters, which is not an easy task though with relevant data in hand you can work on it with a clear approach. You can track or measure a lot of things using NPS metrics, you can track scores for you overall services or a single product, or a web page. It provides you options to explore and collect relevant data. If you are relatively new in the market, you must consider implementing this metric in your surveys since it can help you keep a check on your performance as compared to your competitors based on industry wide NPS benchmark.