Pulse Knowledge Centre
NPS, or Net Promoter Score, is one of the most powerful metrics a business has in its arsenal with regards to growth and retention. This is why we have it built in to Pulse as standard. But, what is an NPS, and how can it help your business to grow? Below, we have a guide to help you get to grips with NPS.
What is a Net Promoter Score?
NPS measures client satisfaction and the likelihood a client will recommend your service. Your score is based on just one important question:
"On a scale of 0 to 10, how likely are you to recommend our company to a friend or colleague?"
The simplicity of only asking this one key question means higher response rates and provides your team with valuable information to improve retention and growth.
How are you scored?
Your respondents rate you out of 10. Depending on their rating, they are categorised as either Detractors, Passives, or Promoters. Your final NPS score is on a sliding scale ranging from -100 to +100 based on your average rating.
How do you work out your NPS?
You use the simple calculation: %Promoters - %Detractors = NPS
For example, imagine you have 10 responses to your NPS. 6 (60%) are Promoters, 2 (20%) are Passives and 2 (20%) are Detractors. Subtract the percentage of Detractors from the percentage of your Promoters.
60% Promoters – 20% Detractors = 40 NPS
In Clientshare Pulse, this will be calculated automatically and will be visible on your dashboard.
What is a good NPS?
A good NPS varies from industry to industry, but a good rule of thumb is:
- More than 20 = Favourable
- More than 50 = Excellent
- More than 80 = World Class
How can you use your NPS?
1. Communicate with Promoters and encourage them to be advocates for your service. Ask about what you can do to turn more clients into Promoters.
2. Reach out to your Detractors to learn what you can do to improve their experience and begin to act on their feedback.
3. Your clients want to feel heard. Act on their feedback and develop your services. This will help you reach new clients through word of mouth and build long lasting relationships.
Read more:
How to create and send a business review with Clientshare Pulse
How to customise your Pulse Index Questions with Clientshare Pulse
Learn more about Quarterly Business Reviews on our QBR Hub, or discover how Pulse can help you via our blog
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