Keeping track of how happy your customers are is one of the most important things you can do for your business. But how do you do it in a systematic, quantitative way?
Today, many businesses use a simple metric called NPS – or, Net Promoter Score.
It’s a quick and easy question for a customer to complete but a surprisingly powerful tool for evaluating customer satisfaction.
Here’s how it works: Given a scale of 0-10, your customers are asked the likelihood they’d recommend you. 9 or 10s are ‘promoters.‘ 6 or lower are ‘detractors.’ Take your percentage of promoters and subtract your percentage of detractors and you’ll get an NPS somewhere from –100 to 100.
What’s a good score? 50 or above is solid. 70 or above is very strong.
With NPS, one number gives you quick insight into the health of your customer relationships.