NPS is derived from one simple question. We ask people—on a scale from 0 to 10—how likely they would be to recommend a company. We then subtract the percentage of people who give a score of 6 or below from those who give a score of 9 or 10 (ignoring those who score 7 or 8).
In this way, we arrive at the net number of people who would promote a company. Companies with a high NPS score (40 or more) are likely to have good growth prospects. NPS is therefore an excellent barometer of your company’s future success.
NPS research is carried out with your customers—people who have used your products or services. In business to business markets, views do not change quickly and so tracking every 12 months is a good interval for this type of research.
When carrying out NPS research, we normally take the opportunity to ask questions on overall satisfaction and the factors which drive satisfaction. In this way, we can understand how the NPS can be improved.
NPS research is a quantitative measure using online or telephone interviews for the data collection. Typically, we work with customer lists as this is by far the most efficient way of identifying who is buying from your company.
Your customers—or at least a good majority of them—can provide comparative scores for other suppliers, enabling us to benchmark against competitors. An NPS interview can be as short as 5 minutes or 15 minutes depending on the number of questions. Since one of the biggest costs of an interview is getting hold of a respondent in the first place, we usually ask a good number of questions once we have located them.
Our client, a maker of software which is sold to engineers, has thousands of customers around the world and email addresses for virtually every one. They use the Net Promoter Score as an indicator of business health and we were commissioned to carry out a tracking study.
We designed a questionnaire for an online survey, mailing customers from lists provided by our client and sending out a link to the survey with a cover note branded with our client’s credentials. This ensured maximum engagement with customers and we obtained amazingly high response rates. The questionnaire was simple and completed easily in around 10 minutes.
Our client achieved some of the highest Net Promoter Scores we have ever seen for a B2B company—the average NPS for all b2b companies is 24 and our client regularly achieved double this score. We ran workshops with our client showing how the NPS score varied with different groups of companies so that they could focus on those where an improvement was most needed.