Digital Consultancy & Business (EN) Non classé

How does your Net Promoter Score impact your Company?

By Benjamin
Views: 2588

Importance of Net Promoter Score

Net Promoter Score (NPS) is a critical metric for any business and measures customer loyalty and satisfaction. It gives you an idea about the number of your loyal customers.

NPS is important to understand why customers become loyal to your brand, like what are their reasons mostly. You’ll have proper feedback from your customers and will find out just how satisfied they are with your products or services.

Benefits of Calculating Net Promoter Score

Net promoter scores give you very good feedback. It can be analyzed very easily as well. Marketing, sales, and product development teams move forward with this information very quickly.

NPS not only provides you with feedback but also enhances the customer experience as well. Based on the information that NPS can provide you with, you can even start working on loyalty programs and develop strategies that will help you to increase customer lifetime value.

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How to Calculate Net Promoter Score?

In order to calculate NPS, you’ll need to conduct a survey as well. During the survey, you have to ask your customers, for example, on a scale of 0-10 how likely they are to recommend you to a friend. Based on the scores that you’ll get, you can put them in different categories.

People with the lowest scores, like 0-6 will be detractors. People who got 7-8 will be passives, and the ones who scored 9-10 will be promoters. Those categories will give you a better understanding of your customers and their loyalty to your brand.

After this you can use the formula for the Net Promoter Score – Net Promoter Score = (Number of Promoter Score/ Total Number of Respondents) – (Number of Detractor Scores/ Total Number of Respondents).

Net Promoter Score Impacts Your Team

Businesses that want to grow rapidly pay a great deal of attention to their resources and team members. Team members should work well together and have great motivation. Otherwise, there is a huge chance that whatever they are doing won’t be so good.

Explain the importance of NPS to them, and explain how they can be actively involved in different processes to increase customer loyalty. Trying to improve NPS should be another goal for them.

NPS Can Quantify Word-of-Mouth Traffic

Word-of-mouth marketing itself is very important for companies as another option for free advertising, but it’s mostly done by satisfied and happy customers. So it’s important to determine what gives you a satisfied customer and what makes them promote your brand on daily bases.

Most customers pay attention to what their friends or family members are recommending to them, so it’s important to develop a good word-of-mouth pipeline. Think about how you can improve the experiences of your customers and how you can make your brand more memorable for them.

NPS Measures Your Customer Loyalty

Customer loyalty is hard to measure because it’s constantly changing, but most customers pay greater attention to brands that they are loyal to. In order to have a better understanding of the loyalty of your customers, you can check the repeated purchases as well.

Also, determine what’s your average order value, this way you’ll know approximately how much your customers spend on your products or services. Also, check how many customers left your brand and canceled subscriptions.

To understand more about how to measure your customer loyalty, you can read one of our articles – “How to Measure Customer Loyalty”.

NPS Provides a Benchmark of Customer Quality

NPS can help you to understand more about your customers’ loyalty, quantity, and quality as well. NPS will help you to understand if certain customers are really the ones that you need and if they are suitable for your products or services. Use the information about other factors as well to get a more clear picture, like what’s your customer churn, conversion rate, etc.

NPS Can Identify Areas for Product Improvement

When you are creating a new product, it’s important to know what your customers think about it or feel about it. When you are monitoring everything with NPS you can understand more about the positive qualities of your products and about the negative aspects as well.

You can implement necessary changes from the beginning and don’t delay the improvement of your product. After your customers will provide you with scores, you can ask them additionally why they decided to give you a certain score and understand more about specific aspects.

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By Benjamin

Digital expert



Benjamin is an experienced strategy consultant with 360° skills and a strong mastery of the digital markets across various industries. He advises our clients on strategic and operational matters and elaborates powerful tailor made solutions allowing organizations and entrepreneur to achieve their goals. Building the digital leaders of tomorrow is his day-to-day job.


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