Blog Post

Don’t Look Now, but Your NPS is Showing…

Fred Reichheld of Bain & Company introduced the idea of the “net promoter score” in 2003 in an article he wrote for the Harvard Business Review.

The concept was simple. Your customers fall into three categories – promoters, passives, or detractors – based on how they respond to one question: How likely is it that you would recommend our company to a friend or colleague?

On a 0-10 scale (with 10 being “extremely likely” and 0 “not at all likely”), customers who answer 9-10 are considered “promoters.” They are enthusiastic about your company and will continue buying from you and referring your products and services to others.

Customers who rate you a 7-8 are considered “passives” and are generally satisfied, but unenthusiastic customers who are vulnerable to the competition. The “detractors,” those who rate your organization 0-6, are unhappy and could be dangerous to your brand because they are likely to share negative feedback about their experience with friends and family.

To calculate your Net Promoter Score, subtract the percentage of Detractors from the percentage of Promoters.

Simple, right?

Companies generally like this concept and can rally behind it because it’s such an easy metric to understand. You can gauge how well your company is performing – at least according to your customers – by how many Promoters and Detractors you have. Improve customer satisfaction and create more Promoters and fewer Detractors.

But much has changed since the introduction of the Net Promoter Score in 2003. Social media and technology have made it easier for customers to “score” your organization – and they do it all day, every day, totally unsolicited.

Today’s customers don’t wait for you to ask “the question.” They are readily sharing their opinions and recommendations about your company on blogs, in web forums, and on their personal Facebook page.

Your company is constantly being “scored” by customers who, for the most part, are basing their comments on their interaction with your frontline employees – your contact center agents. One misstep or bad experience and they are out there on the internet, sharing their bad experience in broad detail.

On the other hand, satisfied customers who have had an outstanding experience can be your greatest advertisers.

It has never been more important for companies to focus on customer loyalty and customer satisfaction because the customer experience has become so transparent.

Are your agents out there on the front lines improving the customer experience? If not, forget about your score. What are you going to do about it?

 

About the author

Matt McConnell

Matt is chairman, president and CEO of Intradiem. Matt co-founded Intradiem in 1995 with a vision of helping companies increase the level of customer service they deliver by improving the performance of their agents. Today, Intradiem is a leader in its market with more than 300,000 call center agents around the world using Intradiem every day. Matt is the author of the book Customer Service at a Crossroads and holds 11 software patents. He graduated from the Georgia Institute of Technology in 1994 with a bachelor's degree in industrial and systems engineering.

Similar Articles

Contact Slider
close slider

Ready to get started or need more information? Our team is here to help!
We look forward to answering your questions and will be in touch within one business day.