What the Heck is NPS Anyways
You’ve most likely received an email survey at some point asking one simple question…
“How likely is it you would recommend our company to a friend or colleague?”
Perhaps you quickly hit “8” on a scale of 1–10 because 8 out of 10 is a good score, right?
What does NPS stand for, and what exactly is the point? NPS stands for Net Promoter Score. Widely used by companies such as AirBnb, American Express, and Slack, the idea behind NPS is to gage the health of your company or loyalty of your user base.
Ratings work in a 0–10 scoring system. You can see from the scale that 8 is actually a passive score (meaning you as the customer is not likely to recommend). It is helpful to understand the category each individual scores falls into in order to be able to score accordingly.
0–6 = Detractors (customer would not recommend your business/product/service)
7–8 = Passives (customer is indifferent and most likely would not promote)
9–10 = Promoters (customer is singing your praises and are recommending your business/product/service to others)
So what’s the hype with NPS and why should you care?
By collecting enough NPS feedback you can gage the health of your company/product/team via this NPS calculator. It’s a measurable way to track the health of your company over time. By knowing whether your customers would recommend you to others you can gage whether the health of your company is on the incline or decline.
By understanding how NPS works you can provide better feedback the next time “How likely would you recommend X company?” pops up in your inbox.
You can use NPS to not only track your company’s external health, but also the internal satisfaction of your employees. An example of this is checking in with employees by asking what their NPS is each week. This can give you a gage on not only how satisfied individual teams are, but also the company culture and vibe as a whole.
You can also use NPS to gage the health of a project on a smaller scale by asking employees to provide a daily/week score on their interpretation of that projects current success.
It’s almost always better to over communicate with employees, customers, and your community. NPS allows a place to communicate that feedback in a clearly defined and measurable way.
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