The Net Promoter Score (NPS), is a tool used to measure consumer loyalty. It works by asking consumers (or in our case, reviewers) the following question: How likely are you to recommend this business to a friend or colleague?
Responses are collected on a scale between 0 and 10, where 0 is the least likely and 10, the most. Responses are then grouped as follows:
Promoters - scores 9-10. Loyal consumers who will keep buying and recommending to others, fueling growth.
Passives - scores 7-8. Satisfied, but unenthusiastic consumers who may be vulnerable to competitors within your industry.
Detractors - scores 0-6. Unhappy consumers who can damage a business, and their growth, by negative word-of-mouth.
To calculate your NPS, take the (Number of Promoters — Number of Detractors) / (Number of Respondents) x 100. It’s that simple. For example, if there were 100 responses, 60 promoters, 30 passives and 10 detractors, your NPS would be 50.
Your NPS score can range from -100 to +100. Here’s what different score ranges mean:
Anything less than 0 - This isn’t great, and is a sign that your business should start understanding, and improving your customer satisfaction levels. Customers are unlikely to buy from you again.
Between 0 and 49 - This is good, you’re out of the negatives! You understand your customers and they are satisfied with your service, however, there’s still room for improvement.
Between 50 and 69 - This is excellent! You have a clear grasp on what your customers need. Your customers are loyal and enthusiastic with your service.
70 and over - This is considered world class customer loyalty, well done! Customers love you, and your business is getting a lot of positive word-of-mouth from referrals.
When a new review is written about your business on Hellopeter, we‘ll collect your NPS for you. This means there is nothing required of you.
A few days after a review is written about your business, we’ll send the person who wrote the review an email. This will ask them one question: how likely are they to refer your business to a friend or colleague? They’ll answer on a scale between 0 and 10, and we’ll use their answer in calculating your overall NPS score.