Wednesday, April 23, 2008

The joy of trying new things - NPS score

You may have noticed the little survey to the left asking if you are likely to recommend this blog to a friend. This is a test of reader satisfaction with this blog and if there are enough people that answer it, it will calculate my NPS score. NPS (Net Promoter Score) is a very SIMPLE method used by companies like GE, T-Mobile, Charles Schwab to understand how loyal customers are and to predict future growth.

It works like this:
  1. You ask a sample of your customers a single question along the lines of "How likely is it that would recommend this company to a friend or colleague" and ask them to respond on an 11 point scale like the one on the left.
  2. Then, once you have the responses, you divide the customers into 3 distinct groups
  3. The groups are: Detractors, Passives and Promoters.
  4. Detractors are dissatisfied and scored 0-6 on the scale.
  5. Passives are generally satisfied and scored 7-8 on the scale
  6. Promoters drive business growth as the company has delighted them and scored 9-10.
  7. The NPS score is simply the % of Promoters - % of detractors

I had fun researching NPS and implementing it in my blog. So, all I need now for total joy is for you to actually use the survey! Let me know what you think!

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