The Net Promoter Score has increasingly become one of the most popular ways for businesses to determine customer satisfaction.
If you’re not familiar with how this business metric works, here is a short overview. The NPS asks customers if they would refer a certain product or service to their friends and, instead of a yes or no, are asked to give a ranking of 0 (not likely) to 10 (highly likely).
Those who give a ranking of 9 to 10 are called “Promoters” and are likely to become loyal customers, while those who gave a 0 to 6 score are called “Detractors” and are unhappy clients who could hurt your business through bad word of mouth. Those in the middle, with rankings of 7 to 8 are called Passives and are considered satisfied but indifferent customers with no strong feelings about your business one way or the other.
To compute the score, simply subtract the number of Detractors from the number of Promoters and compute the answer as a percentage of total respondents. So if the total number of respondents is 200 and if you have 100 Promoters and 50 Detractors, your Net Promoter Score is 25.
The NPS ranges from zero to 100 with a score of 50 to 80 being considered a successful score, and 20 to 30 a good score. Though Passives are not considered in the computation of the NPS, a high number of Passives is still considered a warning sign that a company needs to focus more on its customer relations.
While use of the Net Promoter Score is not that popular yet in the country, it can be a valuable tool for Philippine businesses to gauge how satisfied their customers are with their products or services, as well as being a metric for determining if changes they have made are making customers happier. Here are some tips for applying the NPS in the Philippine context.
- Be precise with the wording of your question so respondents will understand exactly what you want rated.
- Ensure the honesty of responses by guaranteeing the anonymity of the respondents. For example, you can ask the respondents to answer the question and put it in a drop box. Or you can ask the respondents to drop marbles in boxes. But make sure that this is conducted in a place that is inconspicuous. This is important since Filipinos may be loath to give you a negative response out of politeness or shyness.
- Be sure to link the NPS with actual customer behavior over time. For example, if you have a high level of Promoters, are you actually seeing an increase in your sales? Are you seeing a lot of return business?
- Be aware of the limitations of the NPS. For example, it can identify customer dissatisfaction but not answer why people are not happy with a particular product or service. So try adding additional surveys to answer the why.
- Keep in mind that just because you get a positive NPS response in one area of business does not mean that your respondents are overall satisfied with your business. For example, you may have one popular product but overall, your brand is not popular.