CX: What is NPS?
The Net Promoter Score® or NPS® is a customer loyalty and satisfaction measure that divides your customers into three distinct categories: promoters, passives, and detractors. The metric was developed by Frank Reichheld at Bain Consulting in 2003 as a mechanism to track customer loyalty and its usage has been correlated to revenue growth.
Customers are characterized based on their likelihood (on a scale of 0-10) to recommend a company, product, or service to a friend or colleague. Customers who respond with a score of 9 or 10 are considered promoters; scores of 0 to 6 are considered detractors; and scores of 7 or 8 are considered passives.
An organization’s NPS® is calculated by subtracting the percentage of detractors from the percentage of promoters. A positive NPS® is typically considered good, though standards can vary depending on factors such as industry or product offering. SurveyMonkey provides benchmarking NPS® data across its customer base. The median NPS® score across the respondents to the surveys customers create with SurveyMonkey is +36, while an upper quartile NPS®is +66.
Organizations use the NPS® to gauge the loyalty of their customer base as a way to project the likelihood of retaining customers and driving profitable growth. With NPS® data, many organizations are able to uncover areas in their business or product that need improvement, ignite action, and, ultimately, increase both customer retention and revenue growth.
Customer Experience (CX), a new product from SurveyMonkey, enables customer support, product management, account management, and marketing organizations to drive actionable insights sourced directly from the NPS® ratings given by their customer base. SurveyMonkey CX customers also have the option to add follow up questions to uncover key drivers behind their score.
More information on SurveyMonkey CX is available here: cx.surveymonkey.com