Net Promoter Score (NPS)
Why it matters
A falling score often shows trouble before cancellations do, because unhappy customers go quiet for a while before they leave. It also separates the people who will refer you from the people who will warn others off, which an average satisfaction rating blurs. Promoters are a source of referrals and testimonials. Detractors are a list to call before the renewal date, not after it.
How to apply it
- Send the survey at a meaningful moment, such as 30 days after onboarding or after a project is delivered, rather than as a blanket quarterly email.
- Always add one open question: what is the main reason for your score? The comment is worth more than the number.
- Watch the trend and the score per account, not one company-wide average.
- Give every detractor to a named person, with a deadline for a personal reply.
- Keep the survey short and send it from a real person's name.
What it is
Customers answer one question on a scale of 0 to 10: how likely are you to recommend this company to a friend or colleague? Scores of 9 and 10 are promoters, 7 and 8 are passives and 0 to 6 are detractors. The score is the percentage of promoters minus the percentage of detractors. Passives count in the total but not in the sum. The result is a number between -100 and +100, not a percentage. Fred Reichheld introduced the method in 2003.
Say 100 customers respond: 50 promoters, 30 passives and 20 detractors. The score is 50 minus 20, which is 30.
Common mistakes
- Judging a small base by a single reading. With 20 responses, one customer changing from detractor to promoter moves the score by 10 points.
- Comparing your score with other industries. Averages differ widely between sectors.
- Tying staff bonuses to it. People start asking only happy customers.
