What is NPS®?
Net Promoter Score is the world's leading measure of customer satisfaction and employee satisfaction. With the NPS question you measure how satisfied a customer or employee is and their willingness to recommend the company to others. NPS is fundamentally based on the question:
"How likely is it that you would recommend the company to a friend or colleague?"
How to calculate the NPS value?
When the question is asked, the customer or employee answers on an eleven-point scale from 0-10. Those who give the rating:
- 0-6 is Critic (Detractors)
- 7-8 are called Passively Satisfied (passives)
- 9 or 10 are so-called Ambassadors (Promoters)
The responses provide an NPS value that you can calculate by taking Ambassadors - Critics, divided by the number of responses, multiplied by 100. Feel free to use our NPS calculator here
NPS shows the true loyalty of customers/employees.
With NPS - Net Promoter Score, you can identify dissatisfied customers/employees and get a chance to save them, instead of losing them.
Why use NPS & Benchmark?
The NPS benchmark shows how you stand in relation to your competitors
Want to know your competitors' NPS? Do you want to know if you are perceived as better or worse? Together with Nordic Bench, we can offer industry analyzes within most segments in the Nordics. Order the latest reports if you want to compare your NPS with the best in your industry.
Increase profitability and growth
- Studies show that companies that work with ongoing follow-up of the sales and delivery process are more profitable than others. In repeated studies, NPS shows a strong connection with loyalty, profitability and growth.
- Get a better reputation and more ambassadors. This is part of creating growth. Get feedback, find the ambassadors and help them tell potential customers about your brand. NPS shows that if you increase the percentage of ambassadors, you increase recommendations from customer to customer (word of mouth).
- Reduce churn, i.e. customers/employees leaving you. Through feedback, you find detractors (eg dissatisfied) and an explanation of why they give low ratings. By acting directly, you can nurture the relationship and reverse a dissatisfaction. NPS therefore provides a churn-inhibiting effect.
Raise ambition
- Employees who work with NPS become more performance and development oriented.
- Develop winning behaviors. With ongoing NPS measurements, the organization can increase its understanding of employee and customer needs and become better at navigating relationships correctly. Then feedback needs to be collected on an ongoing basis and given to employees who can themselves see the positives of a change and avoid repeating negative habits.
Net Promoter Score
NPS= key figure on the proportion of promoters - the proportion of detractors
Net Promoter System
"NPS System" is the entire company's improvement work linked to the NPS issue. In addition to continuously asking the NPS question after important events, it is about building routines and processes to be able to act. The system then includes what you should act on, who should act and how you should contact the customer.
NPS helps you to…
1) Conduct event-driven investigations when "the feeling is fresh".
2) Provide automated reports to employees so they can gain insight and act immediately. In this way, they can continuously improve, for example, their service, their routines and behaviour.
3) Instantly sense risks and openings in relationships – ongoing feedback can give you a head start of more than 10 months over your competitors.
4) Quicksearch not only gives you real-time NPS, but also alerts you to unhappy customers allowing you to immediately follow up, solve their problems and turn them into ambassadors.
Measure continuously and act immediately
NPS is best measured after important events in the customer and employee relationship using relevant and quick surveys.
- For example, you can ask customers the NPS question after a sales meeting, after delivery, support and exit.
- In an employee relationship, it can be, for example, after recruitment, introduction, PU interview and exit.
With Quicksearch's feedback solutions, you can listen when the customer or employee has something to say, in a way and in a tone that makes them understand that you are listening.
The story behind Net Promoter Score
The 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 the Net Promoter Score began in the United States where the consultant and researcher Fred Reichheld interested in loyalty and customer satisfaction. After many years of working with customer orientation, the feeling grew that traditional customer surveys did not provide the right support for developing customer loyalty. The research led Fred back to the basics, to the factor that has always been the most important question for whether we want to buy more - namely: If we are prepared to put our own credibility on the line, if we really recommend a company - then we are so satisfied and secure in our choice that no other alternative is good enough.
After solid research in collaboration with Harvard Business School, Fred established the model that measures recommendation willingness and which has been shown to have a strong connection to loyalty, profitability and growth.
NPS is today the most popular and useful method for measuring loyalty and acting towards the respondent.
Give us a call!
We are here to answer questions, guide you and give you the right basis for making decisions.
Our NPS value
NPS Swedish golf clubs
NPS Swedish restaurants
NPS Swedish telemarketer
Calculate your Net Promoter Score?
There is a very simple logic behind the measured value.
That's one of the benefits of NPS.
The Net Promoter Score is a key figure based on the percentage who answered 9-10 (promoters or ambassadors) minus the percentage 0-6 (detractors or critics) on a scale of 0-10.
NPS can theoretically vary between -100 to +100. In Sweden, we find half of all investigated companies in the range -10 to +50.
The NPS value varies for different processes and is often higher for, for example, sales than exit or support.
Are you really being recommended?
With ongoing feedback, you can save fragile relationships and create committed ambassadors!
What is eNPS?
Employee Net Promoter Score?
The methodology behind eNPS works for both customers and employees. One of the most important prerequisites for a company to be able to achieve and maintain high customer loyalty is committed employees. Employees who recommend their workplace.
Employees create a better customer experience
Employees who are ambassadors contribute to growth because they create a better customer experience.
Employee Net Promoter Score (eNPS) is based on the same methodology as NPS. By asking the NPS question at various times in internal surveys, you can measure employee engagement and loyalty. When you measure eNPS, you can ensure the development of loyalty and economic growth.
Examples where you can measure eNPS:
• All new recruitments
• Every onboarding (introduction)
• All training
• All internal projects
• Every employee interview
• The payroll process
• The mood every week/month/quarter
• Everyone who quits their job (exit)
