Net Promoter Score (NPS) is a customer loyalty metric that measures the loyalty that exists between you and your consumers. NPS 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 based on a 0 to 10 scale.
The Net Promoter Score is calculated by subtracting the percentage of customers who are Detractors (score of 0 to 6) from the percentage of customers who are Promoters (score of 9 to 10). Passives count towards the total number of respondents, thus decreasing the percentage of detractors and promoters and pushing the net score towards 0.
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 felt to be good, and an NPS of +50 is excellent.
Why use NPS
NPS is an easy way to see how your company is doing from your customers point of view. NPS provides a simplified, and highly effective vision of your brands popularity and share-ability amongst its consumers.
NPS is simple, easy to understand, and quick to implement. It’s also an easy to answer question for your customers.
NPS has become a standard for calculating customer loyalty, improvements to products and services can easily be measured.
It’s a benchmark number that many companies and industry use and track, allowing you to compare your score accordingly.
How to set up an NPS survey with Iterate
Before you begin you'll need to create an Iterate account.
1. Create a new email survey
Add a new question of the Net Promoter Score type, make sure you are happy with the name of your company/product/service, and hit Save.
2. Add a follow up question to help you understand why
It's common to add a follow up question to your NPS survey to help understand why someone answered the way they did, this is easy to do with a multi-line freeform input.
2b. [Alternatively] Ask detractors or promoters a specific follow up question
Using our branching logic you could ask a more specific question to promoters that rated a 9 or 10. Or, you could ask detractors that scored a 0 through 6 a question that helps you understand more about why they rated so low.
3. Review and customize your survey
Once you have built your survey, on the Review tab you can add a title for your survey, add your brand color, logo, and personalize the thank you message. Preview your survey before you send.
4. Send via email
Once customized and reviewed, you should add or import your list of recipients to send the NPS survey to. You can customize the email details, and set a scheduled date for sending the emails.
Best practice, send an NPS survey quarterly
To best measure the success of the changes and improvements to your products or services, you should consider sending an NPS survey quarterly. An easy way to accomplish that with Iterate would be to duplicate the completed survey you have created, you could even import customers to send to, and set a future send date for the end of the quarter ahead of time.
Viewing NPS results on your dashboard
Due to the specific nature of the NPS question type, we have a special section on your survey dashboard that showcases your NPS score. A quick reminder that scores may be negative or positive, and it's worth comparing your score to similar companies or across your industry.
Next: Rinse and repeat the NPS survey type, doing so will allow you to measure and track your score over time. All the best!
Additional reading: NPS, How it works – Wikipedia