What is a Net Promoter Score (NPS)?
A Net Promoter Score (NPS) measures a customer’s willingness to recommend a company and gauges customer satisfaction and loyalty.* The metric is calculated by customers responding to the question “On a scale of 1-10, how likely is it that you would recommend us to a friend or colleague?”
Net Promoter Score was introduced in 2003 by Fred Reichheld and Bain & Company, Inc., who were driven to find a new approach to the traditional customer satisfaction survey. Using data supplied by Satmetrix, they tested multiple questions in multiple industries and found that the above one correlated most strongly with customer behavior.
NPS is popular for measuring customer satisfaction and overall brand loyalty due to its simplicity, ease of use, versatility, and widespread adoption. Nearly two-thirds of the Fortune 1000 use NPS. (Bain & Company)
*Net Promoter, Net Promoter Score and NPS are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.
How does scoring work?
Based on a customer’s response to the survey question, they are placed into one of three categories:
- Promoters – gave a score between 9-10 (Extremely likely to recommend)
- Passives – gave a score between 7-8.
- Detractors – gave a score between 0-6. (Not at all likely to recommend)
The NPS is calculated using the following equation:
NPS Score = % of Promoters – % of Detractors
This generates a score ranging from -100 to 100, which is the Net Promoter Score. Average scores vary immensely by industry, as shown in the image to the right, but in general, an NPS above 0 is “good”, above 50 is “excellent” and above 70 is “world-class”. (Inc. Magazine)
What is RapidScale’s process?
Upon closure of every support ticket, RapidScale’s third-party tool automatically sends out client experience surveys, populating the results with no human intervention. Our customers are first asked to assign a score from 1 to 10, consistent with the NPS process.
RapidScale’s survey participants also rate the Cloud Support Engineer they interacted with, with the option to provide additional feedback.