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Net Promoter Score®

“On a scale of zero to 10, how likely are you to refer to a friend or colleague?”

You’ve undoubtedly seen this question before. In fact, as an Infusionsoft user, you are periodically annoyed welcomed with this question/survey screen when you log into your Infusionsoft app. While I’m sure Infusionsoft could come up with a less annoying way to ask this question, I certainly agree with the importance of asking; and I’m glad they continue to ask.

This question, pioneered from Fred Reichheld, author of The Ultimate Question, is part of a methodology that gauges customer sentiment called the Net Promoter Score® (NPS).  The NPS predicts the likelihood of a customer repurchasing from you or referring your company to a friend. It can also predict “Detractors,” or unhappy customers, who can damage your brand and impede growth through negative word-of-mouth.

The NPS categorizes respondents into one of three groups of people:

  • 0 – 6 = Detractors – unhappy customers who can damage your brand and impede growth
  • 7 – 8 = Passives – satisfied but unenthusiastic customers who are vulnerable to competitive offerings
  • 9 – 10 = Promoters – loyal enthusiasts who will keep buying and refer others, fueling growth

The NPS is calculated by subtracting the percentage of respondents that are labeled “Detractors” from the percentage of respondents that are labeled “Promoters.”

% of Promoters – % of Detractore = NPS

The Net Promoter Score does have it’s advantages as well as disadvantages. The NPS is a simple metric– it is easy to survey and calculate and makes your customer experience quantifiable. It can help you identify raving fans as well as identify any detractors so you can mitigate the negativity that they might spread. But be careful, the NPS does not address what needs to be fixed. And just because you have a positive NPS doesn’t mean you’ll necessarily be on the path to growth and increased revenues.

However, for a quick, easy method to determine whether your customers are more likely to promote or detract from your company, it’s hard to beat.

We came up with a way to regularly track the NPS using Infusionsoft’s campaign builder. Here’s an article on how we did it.

 

This article is provided by Fuseomatic, LLC. (c) 2014. For more information, visit www.fuseomatic.com

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