What is Net Promoter Score?
Net Promoter Score or NPS is a metric used to gauge the loyalty of a firm’s customer relationships. It is a simple method to get a metric on customer satisfaction. I recently had a client give me a copy of The Ultimate Question by Fred Reichheld. The book and NPS concept appealed to me because it fit with my simple, practical, and valuable approach. And, in this day of social influence, I believe “reputation” is the #1 intangible asset of Lisk Associates.
NPS groups your customers into one of three categories: Promoters, Passives, and Detractors. Promoters are loyal enthusiasts who keep buying from a company and urge others to do the same. Passives are satisfied but unenthusiastic customers who can easily be wooed by the competition. Detractors are unhappy customers trapped in a bad relationship.
I decided to generate an NPS survey for Lisk Associates. Given my natural DISC behavioral style, I never considered what I would do if the NPS scores came back negative. I think that may be a blind spot, “overly optimistic”.
I created a survey monkey and sent it to the 50 clients we had invoiced over the last three years. We got 18 responses for a 36% return rate. I immediately began thinking the worst, Are the people that didn’t fill out the survey simply “polite detractors”? I researched and found average NPS response rates are 20-40%. 36% is OK, but I was thinking I was going to get 100%. Again, a couple blind spots in my behavioral style.
The Ultimate Question
The survey had two simple questions which raters completed in an average time of 59 seconds. The first question was “the ultimate question”:
On a scale of 1-10, how likely is it that you would recommend Lisk Associates to a friend or colleague?
Scores of 9-10 = Promoters. Scores of 7-8 = Passives. Scores of 1-6 = Detractors. NPS is then calculated from the total number of responses. NPS = % of Promoters – % of Detractors.
Lisk Associates NPS = 78
- Total Replies: 18
- Promoters: 14
- Passives: 4
- Detractors: 0
The Follow Up Question
Question #2: What is the single most important reason for your rating?
- Ryan’s personality and approach. He’s very “real.” I had never worked with a coach before and he’s completely different from what I expected.
- I trust Ryan as a person and believe in the service he is offering. He is highly competent, kind, and is one of the most responsive professionals I have had the privilege of working with.
- Openness to new ideas.
- Most all hires, promotions, or transfers have been successful which included the DISC testing.
- Personal relationship and trust in delivery of quality service.
- Their knowledge about the assessment tools, their history of successfully working with clients of all sizes to utilize these tools, the workshops provided, and their response rate and customer service.
- The service is helpful to developing a high performing team.
- Good service at reasonable prices & an interest in helping us meet our goals.
- Friendly, accommodating, responsive, sincere.
- Ryan is great to work with and the Trimetrix assessment is totally accurate.
- Proven benefits of the surveys.
- Always a pleasure. Fast and reasonably priced.
- Relate-ability and professionalism.
- Excellent training and customer service.
- Knowledge and experience and approach.
- Added value to our strategic initiatives and helped us avoid more risky hires.
- 78 is an above average NPS.
- We still have work to do in the customer service area.
- I will continue to focus on giving our clients what they want while brining a steady stream of new ideas and thought-starters such as NPS.
To find out more about NPS read The Ultimate Question or go on-line at http://www.theultimatequestion.com