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Measuring Your Net Promoter Score℠

Measuring Your Net Promoter Score℠

Sustained value creators have Net Promoter Scores two times higher than the average company.

Asking the ultimate question allows companies to track promoters and detractors, producing a clear measure of an organization's performance through its customers' eyes, its Net Promoter Score. Bain analysis shows that sustained value creators—companies that achieve long-term profitable growth—have Net Promoter Scores (NPS®) two times higher than the average company. And Bain's Net Promoter System leaders on average grow at more than twice the rate of competitors.

To calculate NPS, start with the ultimate question, “How likely are you to recommend us to a friend or colleague?” and score the answers on a zero-to-ten scale. Your Net Promoter Score is simply the percentage of customers who are promoters (those who scored 9 or 10) minus the percentage who are detractors (those who scored 0 to 6).

How the Scoring Works

How the Scoring Works

We score the answers to the ultimate question on a simple zero-to-ten scale. This scale is familiar and easy for customers to understand. And the responses tend to cluster in three groups, each one characterized by different attitudes, and more importantly, different behaviors linked to economic value.

The Net Promoter Score

The Net Promoter Score

Your Net Promoter Score is simply the percentage of promoters minus the percentage of detractors. It’s a number you can compile and track regularly, not only for a whole company but also for each business, product, store or customer-service team. You can also track it for customer segments, geographic units or functional groups. It helps everyone focus on the twin goals of creating more promoters and fewer detractors. It is, quite simply, your customer balance sheet.

The Net Promoter System

The Net Promoter System

But the Net Promoter System is much more than just the score. Net Promoter System practitioners ask customers the reasons for their ratings using an unstructured, open-ended question. This provides employees throughout the organization the opportunity to hear comments from customers every day—in their own words. These leaders build that feedback into their operating systems, using it both to address customer concerns and to fuel the innovations that generate more promoters. They use this closed loop to learn more about how they can improve their processes, people, products and pricing for the long term.

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