What is Your Net Promoter Score (NPS) and How it Will Change Your Business?

What is Your Net Promoter Score (NPS) and How it Will Change Your Business?
What is Your Net Promoter Score (NPS) and How it Will Change Your Business?
By Lyndsey Scofiled

Customer service is what we do TO a customer. Customer Satisfaction is the GRADING of how well we did it. Your Net Promoter Score (NPS) is garnered from the single question: On a scale of 0 to 10, how likely are you to recommend our service to a friend or family member? Moving the needle on that question can transform your organization.

The average NPS varies by industry. For example, among the transit agencies we’ve worked with, the average NPS is about 30%, while the NPS for internet service providers is only 2%, and the NPS average for automobile industry is 40%. The NPS question on our customer satisfaction surveys provides an ideal tool to monitor how customers perceive the service delivered each quarter. For example, if you introduce service improvements at your agency, your NPS will help determine if your customers are noticing the change and how they are responding to it.

What does your Net Promoter Score mean?

We sometimes encounter resistance to using NPS as the ultimate measure of customer satisfaction. After all, why can’t we simply ask customers how satisfied they are with our service? We recommend asking both, but the reason we believe in the NPS is that it’s the only true way to benchmark against peers in the industry and across industries. While each agency can calculate customer satisfaction differently, there’s only one way to measure and report NPS. We wholeheartedly believe that high performing organizations need access to data for benchmarking as part of their continuous improvement strategy.

Here’s a key to decoding what your NPS really means:

If every customer was a detractor, your score would be -100, while if every customer was a promoter, your score would be +100. The ranges in between really depend on your industry’s average, but below are rules of thumb that generally hold true.

TransPro Consulting’s team of transit management, operations, and communications specialists leverage your NPS into a clear customer advocacy strategy, turning your Net Promoter Score into a valuable marketing tool that generates referrals and drives new customers to your product or service.