Net Promoter Score
Net Promoter Score (NPS) is a simple metric to measure customer satisfaction that users can fill up quickly on a regular basis and it doesn’t require any analysis to digest. However, NPS is backward looking. For forward looking, ask Qualitative Feedback.
How to ask
How likely are you to recommend our company/product/service to your friends and colleagues?
The answer takes the form of a score, from 0 to 10, with 0 being not at all and 10 being extremely likely.
How to analyze
You then group your customers into three groups based on their response:
- Promoters (9-10): Customers who love your product and will recommend it to others.
- Passives (7-8): Customers who are ambivalent.
- Detractors (0-6): Customers who are unhappy and may advise against working with you.
Net Promoter Score = (% who are Promoters) – (% who are Detractors)
Most people have a ratings bias, i.e., they avoid giving low ratings and settle for something in the middle. The NPS scale keeps that bias in mind.
Look for blogs talking about NPS to get an idea about benchmarks.