Have you heard of the Net Promoter Score?
Recently Mac Srinivasan, President for BNI Asia Pacific, visited New Zealand. While in New Zealand Mac talked to us about using our Net Promoter Score.
The Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of customers to recommend your business’s products or services to others.
It’s used as a proxy for gauging the customer’s overall satisfaction with your product or service and the customer’s loyalty to your brand.
How is it calculated?
Customers are surveyed on one single question. They are asked to rate on an 11-point scale the likelihood of recommending the company or brand to a friend or colleague.
“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?”
Based on their rating, customers are then classified in 3 categories: detractors, passives and promoters.
- DETRACTORS: ‘Detractors’ gave a score lower or equal to 6. They are not particularly thrilled by the product or the service. They, in all likelihood, won’t purchase again from the company, and could potentially damage the reputation of the business through negative word-of-mouth.
- PASSIVES: ‘Passives’ gave a score of 7 or 8. They are somewhat satisfied but could easily switch to a competitor’s offering if given the opportunity. They probably wouldn’t spread any negative word-of-mouth, but are not enthusiastic enough about your products or services to promote them.
- PROMOTERS: ‘Promoters’ answered 9 or 10. They love your products and services. They are the repeat buyers, are the enthusiastic evangelist who recommends the company products and services to other potential buyers.
The Net Promoter Score is determined by subtracting the percentage of customers who are detractors from the percentage who are promoters- a score between -100 and 100.
At one end of the spectrum, if when surveyed, all the customers gave a score lower or equal to 6, this would lead to a NPS of -100. On the other end of the spectrum, if all of the customers were answering the question with a 9 or 10, then the total Net Promoter Score would be 100.
Globally BNI currently has a score of 48 and BNI New Zealand has a score of 52 which is very positive! It indicates that our members are happy and positively promoting BNI.
Why not try using the Net Promoter Score in your own business? It’s a great way to gauge the satisfaction of your customers and help grow your business.
