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Understanding the impact your organization is having on your customers can be critical to your business's health and growth. Finding a metric, you can regularly return to as an indicator of whether your business strategy is succeeding can make all the difference. Many organizations leverage Net Promoter Score, or NPS, to set benchmarks for customer satisfaction and business health.

What is an NPS Score?

An NPS score is an evaluation of your customers' loyalty and satisfaction when thinking about your company. NPS scores are often used to measure the impact and success of Customer Experience programs. An NPS score can be more tangibly understood as the likelihood of a customer to recommend your product or services to a friend or colleague.

There are three types of customers taken into consideration when building your score; promotors, passives and detractors. These categories cover the different customers that impact your business success and perception.

  • Promoters are your most loyal customers who are sharing your products or services with their network.
  • Passives are customers that are indifferent to you and could swing either way in their loyalty.
  • Detractors are your least loyal customers who have likely had a bad experience and could leave your brand or damage it by sharing their negative perspective.

These customers are asked a single question and then rank their answer on a scale of 1-10. You then subtract the percentage of detractors from promoters to establish your score. A higher score is more desirable and indicates higher loyalty and satisfaction.

Utilizing Your NPS Score

Developing an NPS score is only a starting point. Tracking your NPS score can give you ongoing insight into your customers’ feelings towards different products or services your organization offers. Paying close attention to changing NPS scores also allows you to compile and regularly track data on your customers that can impact your overall business strategy.

This evaluation allows you to assess where your organization sits and what your options may be moving forward in your growth process. Keep in mind your NPS score is an internal metric that allows your company to assess your strategy and relationship with your customers.

NPS, (Net Promoter Score) is the gold standard for measuring loyalty. Just about every company that is serious about customer experience uses NPS. However, is NPS the best measure for understanding and taking action on improving the experience of your customers? Is there NPS “Fatigue” in the market? In this webinar, we will explore other powerful measures that can be helpful in understanding the customer experience. We will discuss how to choose the right metric and how to use CX metrics to change the experience.

The Value of Knowing Your Customers’ Perspective

Your customers want to feel seen and understood by your organization, and your NPS score offers some insight into whether or not you are meeting these emotion-driven needs. Understanding how your customer base feels about your organization can dramatically alter the experiences you deliver and the services you provide. Through the customer type information you receive with NPS score surveying, you can now focus on transforming your CX strategy and delivery to better meet your customers’ needs and wants.

This transformation increases customer loyalty by helping you identify ways to improve and gives you the information to prioritize reaching out to detractors. As your relationships improve, your referral marketing will likely increase, and your detractor number decrease.

Improving Your Score Through CX Transformation

A high NPS score is not a guarantee of success. However, your NPS score can help to point you in the direction of critical transformation. As your score improves over time, it is likely a positive indicator that the steps you’ve taken are impactful.

The real effect will be seen in the meaningful relationships that come from creating exceptional experiences for your customers. As your customers feel valued and understood, they are more likely to become promoters, which will result in higher NPS scores.

Transforming your CX is critical in changing your NPS score and crucially changing your organization's behaviors and relationships. Avtex can help.

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