Net Promoter Score | Our Services | Ruby Cha Cha

Net Promoter Score

Net Promoter Score is an alternative to customer satisfaction research. Basically it’s a customer loyalty metric correlated with revenue growth. Net Promoter Score is used to determine the likelihood that the customer will buy again, based on their affinity with the company and resistance to defecting to a competitor.

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How likely is it that you'll recommend this product to a friend or colleague?

Net Promoter score is done based on a single question around the likelihood of recommending your company/product/service to a friend or colleague using a scale from 0 to 10 which will help to split answers between Detractors, Passives and Promoters.

  • Score of 7 - 10: Promoters

Considered likely to exhibit value-creating behaviours, such as buying more, remaining customers for longer, and making more positive referrals to other potential customers.

  • Score of 5 - 6: Passives

Their behaviour falls in the middle of Promoters and Detractors.

  • Score of 0 - 4: Detractors

Believed to be less likely to exhibit value-creating behaviours.

Measuring loyalty can be done in several ways, and researchers have asserted that there are better predictors of actual recommendations than asking "likelihood to recommend”.

However, the purpose of the Net Promoter Score is not to predict actual recommendations alone, but to predict the full suite of financially-advantageous behaviours.

Companies are encouraged to follow the likelihood to recommend question with an open-ended request for elaboration, soliciting the reasons for a customer's rating of that company or product. These reasons can then be provided to front-line employees and management teams for follow-up action.

The "Why?" question provides information with context and depth needed to reference customer needs and identify improvement opportunities.

Additional questions can be included to assist with understanding the perception of various products, services, and lines of business. These additional questions help a company rate the relative importance of these other parts of the business in the overall score. This is especially helpful in targeting resources to address issues that most impact the Net Promoter Score.

With the use of social recommendation tools increasing every day, recommendations have an even more critical role to play. Managed properly, your Net Promoter program can ensure that you have plenty of recommendations helping to drive your business growth.

Get in touch with Ruby Cha Cha

Get in touch with Ruby Cha Cha