Net Promoter Score® involves identifying dissatisfied customers and rectifying what is wrong. The system also identifies extremely
satisfied customers, who are called ambassadors. It’s important to nurture this relationship and make it easier for the ambassadors to promote your brand.
NPS® is essentially based on the question “to what extent can you recommend x to a friend or colleague?” and gives a key figure on the proportion of ambassadors (promoters) minus the share of critics (detractors). NPS® shows customers/employees real loyalty.
Net Promoter Score®
NPS® = key figures on the proportion of promoters – proportion of detractors.
Net Promoter System®
“NPS System” is the whole company’s improvement work linked to the NPS® question. In addition to continuously adjusting the NPS® question after major events, it’s about building up routines and processes in order to act. The system then includes what you should act upon, how you contact customers, and who to do it.
Measure continuously and act directly
NPS® is best measured after important events in the customer and employee relationship and with relevant and quick surveys.
For example, customers can ask the NPS® question after a sales meeting, after the delivery, support and exit.
In an employee relationship, it can be after the recruitment, introduction, PU call, and exit.
With Quicksearch´s feedback solutions you get a chance to listen when the customer or employee has something to tell, in a way that makes them understand that you are listening.
NPS® helps you to…
1) Conduct event driven surveys directly connected to each event.
2) Give automated reports to employees so that they can get an insight and act directly. In this way they can continually improve their service, their routines and behaviours.
3) Immediately detect risks and openings in relationships – continuous feedback can give you a head start of more than 10 months compared to your competitors.
4) Quicksearch gives you not only NPS® in real time, but also warns you for dissatisfied customers which means that you can immediately follow up, solve your problems, and turn them into promoters.
Our NPS® value
NPS® for Swedish golf clubs
NPS® for Swedish restaurants
NPS® for Swedish telemarketers
The history behind Net Promoter Score®
Net Promoter Score® was developed by Fred Reichheld, a consultant at Bain. The method is described in the book ”The Ultimate Question”.
Today traditional customer surveys are not enough!
The story behind Net Promoter Score® started in the US where the consultant and researcher Fred Reichheld was interested in loyalty and customer satisfaction. After many years of hard work with customer orientation, the feeling grew that traditional customer surveys didn’t give the right support to develop customer loyalty. The research led Fred back to the foundation, to the factor that has always been the most important question regarding if we want to buy more. If we are prepared to pledge our own credibility and if we really recommend a company it means that we are so pleased and secure in our choice that no other alternative is good enough.
After extensive research in collaboration with Harvard Business School Fred established the model that measures the recommendation will and which has proved to have a strong connection to loyalty, profitability and growth.
NPS is currently the most popular and practical method to measure loyalty and to act upon it.
How do you calculate Net Promoter Score®?
There is a very simple logic behind the value. That’s the beauty of NPS®.
Increase profitability and growth. Studies show that a company that works with continuous monitoring of the sales and delivery process is more valuable than others. NPS® shows in reoccurring studies a strong correlation between loyalty, profitability and growth.
Get a better reputation and more ambassadors. This is a part of creating growth. Gain feedback, find ambassadors and help them to tell potential customers. NPS® shows that if you increase the amount of ambassadors you then increase the recommendations from customer to customer (word of mouth).
Reduce churn, i.e. customers/employees leaving us. Find detractors through feedback (e.g. dissatisfied) and identify the reason to why they are giving low score. This gives us the opportunity to immediately improve the situation. NPS® therefore has a churn obstructive effect.
Increase ambition. An employee that works with NPS® becomes more performance and development oriented.
Develop winning behaviours. By continuously NPS®, the organization can increase it’s understanding regarding the employee and customer needs and get better at navigating correctly in relationships. To motivate employees you need to gather feedback continuously and communicate the results within the organisation.
The method behind eNPS® works on both customers and employees. One of the most important prerequisites for a company to achieve and maintain a high customer loyalty is through committed employees. Employees that recommend their workplace.
Employees who are ambassadors contribute to growth because they create a better customer experience.
Employee Net Promoter Score® is based on the same methodology as NPS® and involves measuring employees commitment and loyalty through asking the NPS® question in internal surveys at different times. By measuring eNPS® it is possible to ensure development of loyalty and economic growth.
Examples where you can measure eNPS® :
• All new recruitments
• Every onboarding (introduction)
• All educations
• All internal projects
• Every staff appraisals
• The wage process
• The atmosphere every week/month/quarter
• Everyone that quits the job (exit)
Quicksearch combines systems and knowledge for ongoing surveys that quickly creates measurable results and gives long-term success.
Swedish standard for ongoing surveys will show you as respondent that a survey is short, quick and relevant. Read more here.
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