Measure Customer LOVE with the Net Promoter Score
Table of Contents
- How do you measure customer loyalty?
- How do you calculate your Net Promoter Score (NPS)?
- To calculate your NPS manually, use this simple formula
- Prompt Customers with an NPS Poster
When NOT to use the NPS
The Net Promoter Score Tells a Love Story
How do you measure customer loyalty?
How do you know you’re winning? Your customers will tell you. When your business exceeds your customers’ expectations they’ll reward you with more business and great reviews.
When you fail to meet expectation, customers will still tell you, but you may be going out of business by then, if you’re mot measuring customer loyalty.
That is why the Net Promoter Score (NPS) was created by Fred Reichheld of Bain and Company in 2003 and published in the Harvard Business Review.
The NPS measures a customers’ willingness to recommend a product, service or business. It turns out that recommendations of existing customers are key to the future growth of a business.
Those who answer ‘0’ to ‘6’ are ‘Detractors’.
For whatever reason, they don’t like you. They may not ‘hate’ you and they may even remain your customer – until some better opportunity is presented to them by a competitor.
You still want to engage Detractors – ask them what went went wrong and how you could make it better.
If you ask a Promoter for a testimonial they will tend to give you one. They will also tell their friends.
To Calculate your NPS Manually, Use This Simple Formula
Note: many apps and vendors perform this math function automatically. For full transparency, this is how the formula should work.
(Number of Promoters / Number of Survey Takers) x 100 = Percentage of Promoters
(Number of Detractors / Number of Survey Takers) x 100 = Percentage of Detractors
Percentage of Promoters – Percentage of Detractors = NPS
Use the Net Promoter Score poster to prompt your customer
In order to use the Net Promoter Score – you can simply ask them the following question:
“Would you recommend our product or service to a friend or a family member?”
If you are a storefront small business owner, you can use ‘prompts’ in your office or checkout. This ‘prompt’ is a poster that hangs on the wall.
Ask your current customer for their recommendation or review. Here are three ways to ask a customer for a video testimonial.
I first started using tools like the Net Promoter Score several years ago when I was in business (I am a private practice physical therapist).
Clients (we called them patients) would finish their therapy treatment and say to me, “Thank you! You’ve helped me more than the pills or surgeries – I wish I had started this earlier!”
That’s when I realized I needed a way to communicate the LOVE in that moment to new clients who may also need my service.
I realized I needed better tools to talk to new clients and other small businesses might need those same tools.
Google Reviews is a great tool but it’s passive – I was looking for a way to actively solicit testimonials from people who were already stepping forward with praise and loyalty.
Someone who scores you a ‘9’ or a ‘10’ is a Net Promoter who will recommend your business to a friend or a family member. The NPS is very helpful to identify these people for an additional video testimonial.
By the Consistency Rule, these people have already publicly praised you and are most likely to agree to your request for a video testimonial – in order to remain internally consistent with their previous choice.
Should YOU advertise online with customer testimonials?
Perhaps, your business may be different than mine – check out this description of plastic surgeons using online video to advertise and perhaps this will help.