Net Promoter Score (NPS)
NPS is a great management tool for marketers used in order to measure customer satisfaction. It basically shows us how likely the customers are to recommend your company, product or service to their friends, collegues, relatives etc. Studies indicate that customer satisfaction level is directly correlated with revenue growth relative to competitors.
How it works?
It is calculated based on cumulative responses to a single question, that is: How likely is it that you would recommend our company/product/service to a friend or colleague? The possible scores for this range from 0 to 10.
9-10 – respondents with this score are called PROMOTERS, they tend to be loyal, buy a lot of your products, reffer your company to others and are in general value-creating customers.
7-8 – those who respond with this score are labeled as PASSIVES, these people feel neutral about your products, they might like them but not enough to recommend them further, at least yet. They will stick to your product untill a better deal comes along.
0-6 – those who responded with this score are called DETRACTORS, they are so unhappy with your business, they will switch to competitor as soon as possible, the word of mouth feedback is largely negative, potentially hurtful for your business
Net Promoter Score is calculated by subtracting the % of customers who are DETRACTORS from the % of customers who are PROMOTER, respondents labeled as PASSIVE are excluded from the calculation, althought they count towards the total numebr of respondents.
We have just launched our new service which is 100% FREE and enables you to run as many surveys through WhatsApp as you wish. If you would like to know more about it please visit this article where we explain how to run surveys using our new tool. Now we are going to use Chatpoll to show you how to calculate Net Promoter Score for your company.
After running the survey on WhatsApp we now have all the necessary data to calculate NPS.
Number of total votes = 6
Number of detractors = 1 = 17% of total votes
Number of passives = 1 = it is excluded from the calculation
Number of promoters = 4 = 67% of total votes
NPS for ToChat.be= 67%-17%= 50
The scores for NPS range from -100 to 100. In general any score equal to 50 or above is considered excellent, although a true good score would have to be measured by a double-blind benchmark, meaning you would have to compare your score to another company/ies in the same industry and your score has to be higher, preferably substantially higher then your competitors to be considered good.
Chatpoll for NPS
Thanks to our new FREE service, you will be able to calculate NPS for your own business/product and get to know where you stand on the market. If you like this article, please check more of our stuff, we offer many great, usefull tools and advice related to WhatsApp. Our content is available in many languages. If you have any questions please leave a comment, we are here to help you!