Net_Promoter_Score

Net Promoter Score What is a net promoter score' I asked myself the same question so I did a little research and found out. A net promoter score is tells you how well your customers are satisfied based on three groups of people and one question which is; “How likely is it that you would recommend this business to a friend or college'” (Satmetrix Systems, 2012) The promoters are the customers that will continue to purchase product and refer other people that they know. A passive customer is happy with the product but it is possible they will go somewhere else, and they may or may not refer the business. Then you have the detractors which are not satisfied with the business and will not refer to anyone they know. In order to calculate your businesses net promoter score you need to have customers answer that question and by rating there answer 1-10. A promoter will rate the business at a nine or ten, a passive will put a rating of seven or eight, and a detractor will give you a rating anywhere from zero to six. Once you have your customer ratings sort them by the grouping they belong in. You will then take the percentage of customers that are promoters and subtract the percent of customers that are detractors; this will then equal your net promoter score. (Warrillow, 2011) If you took a survey of 250 customers 90 are promoters 36%, 87 are passives 35%, and 73 are detractors 29%; your equation would be 36-29= 7. If your business has a high net promoter score your business is more likely to gain new customers because more of your customers are going to suggest your business to other people. If you have several customers referring your business it will continue to grow. On the other hand if you have a low score it could be detrimental to your business because not only are those customers not going to refer your business they are likely to suggest to go anywhere but your business. Just because a customer refers the business or does the opposite by talking down about a business does not mean you are going gain customers or lose a potential customer. References Satmetrix Systems, I. (2012, 2006). The net promoter score and system. Retrieved from http://www.netpromoter.com/why-net-promoter/know/ Warrillow, J. (2011, June 24). One question can predict the future of your company. Retrieved from http://www.inc.com/articles/201106/whats-your-net-promoter-score.html