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Today, to stand out from the competition requires an edge. One way to create differentiation is by providing exemplary customer service. Almost every business claims to provide “the best” service, but how can you be sure that they’re not just talking the talk?

A Net Promoter Score (NPS) is a way to measure customer perception.

What is a Net Promoter Score?

NPS is a metric used to benchmark customer experience. Scores are measured with the answer to a survey and scored with a number from -100 to +100, higher scores being better.

NPS is held up as the gold standard for customer experience metrics. Developed in 2003, it’s now used by millions of businesses to measure customer perception.

The BIG Question!

NPS is based on a single question…

“How likely is it that you would recommend – organization X, product Y, or service Z – to a friend or colleague?”

Respondents give a response between 0 (not at all likely) and 10 (extremely likely). The results fall into one of 3 specific categories:

• Promoters’ responses that are 9 or 10 are typically loyal and enthusiastic customers.

• Passives give businesses a rating of 7 or 8. They are happy, but not happy enough to actively promote your brand.

• Detractors score your business from 0 to 6. Detractors are unlikely to buy again and may discourage others from buying from you.

What’s a Good Score?

Any score above “0” is good because it means you have more promoters than detractors. For example, Netflix has a score of 64, Apple’s is 49!

Scores are calculated by subtracting the percentage of detractors from the percentage of promoters. For example:

if 10% of respondents are detractors, 20% passives, and 70% promoters your NPS score would be 70% – 10% = 60%.

What’s a Bad Score?

If your score is below 0, then you have more detractors than promoters. Here is where benchmarks are important. For example, while a score of -3 may seem not so great, you need to look at comparable scores within your industry. For example, if the industry average is -10, your score doesn’t look so bad. That said, a negative NPS is a sign that you have some work to do!

Here at National, we’ve been committed to our customers since 1927 and are proud to have achieved a 92% NPS score! Call and let us show you why our customers continue to choose us again and again

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