After tallying the responses from our projects from the end of the year, we were excited to see that our final NPS (Net Promoter Score) for all of 2017 was an incredible 78! We had established a goal of 60 for the year, so this was big news amongst the PrintForm team. We’d like to give special thanks to all of our amazing customers, and recognize the efforts of both our customer facing and production teams for this accomplishment.
Read below to learn more about the Net Promoter Score program and see how the score is calculated, or visit https://www.netpromoter.com/know/.
Net Promoter Score (NPS) is a management tool that can be used to gauge the loyalty of an organization’s customer relationships. It serves as an alternative to traditional customer satisfaction research and is correlated with revenue growth. NPS has been widely adopted with more than two thirds of Fortune 1000 companies using the metric.
NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., higher than zero) is considered good, and an NPS over 50 is considered excellent.
The Net Promoter Score is calculated based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague? The scoring for this answer is most often based on a 0 to 10 scale.
Those who respond with a score of 9 to 10 are called Promoters, and are considered likely to exhibit value-creating behaviors, such as buying more, remaining customers for longer, and making more positive referrals to other potential customers. Those who respond with a score of 0 to 6 are labeled Detractors, and they are believed to be less likely to exhibit the value-creating behaviors. Responses of 7 and 8 are labeled Passives, and their behavior falls in the middle of Promoters and Detractors. The Net Promoter Score is calculated by subtracting the percentage of customers who are Detractors from the percentage of customers who are Promoters. For purposes of calculating a Net Promoter Score, Passives count towards the total number of respondents, thus decreasing the percentage of detractors and promoters and pushing the net score towards 0.
The primary purpose of the Net Promoter Score methodology is to evaluate customer loyalty to a brand or company. The ability to measure customer loyalty is a more effective methodology to determine the likelihood that the customer will buy again, talk up the company and resist market pressure to defect to a competitor.