What is the Net Promoter Score (NPS)?
The Net Promoter Score (or NPS) is a simple, yet powerful tool that you can use to measure the loyalty and satisfaction of your customers. It can also be used to gauge the loyalty of partners in your partner program. The NPS is calculated based on responses to a single question: “On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?”
Based on their responses, customers and partners are classified into three categories:
- Scored 9-10: These respondents are called Promoters. They’re satisfied with your business and are eager to help you attract new partners or customers.
- Scored 7-8: These respondents are called Passives. They’re generally neutral about your products and may switch to another provider if given the opportunity.
- Scored 6 or less: This score signifies your Detractors. These are likely unhappy customers or partners who could potentially damage your brand through negative comments or reviews.
Your NPS score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. You’ll get a score that ranges from -100 (all respondents are Detractors) to +100 (all respondents are Promoters).
For instance, if you’re a payment processing company and you receive a high NPS from your channel partners, it indicates they’re pleased with your partnership and may refer more partners or customers your way. Conversely, a low score suggests there may be issues with your products, support, or partner program that you should address.
By regularly measuring your NPS, you can keep a pulse on your customer and partner experience, identify areas for improvement, and take action to increase overall satisfaction.