I swiped my debit card and stared at the tiny screen…
I expected a prompt for my PIN. Instead, the monitor read, “How likely are you to recommend K-Mart to a friend”?”
This caught me off guard. K-Mart wants to know if I LIKE them? Not only that, they want to know if I like them enough to TELL someone ELSE I LIKE them? That’s actually kind of cool. And I said to myself,
“Net Promoter Score has arrived at the K-Mart cash register!”
If you haven’t heard much about the Net Promoter Score (NPS), that’s likely to change this year. More and more businesses are using NPS to take the pulse of their existing customer base. The premise of a Net Promoter Score is actually fairly simple: To figure out your NPS, you take a set number of customers and ask them one question:
On a scale of 0-10, how likely are you to recommend us to a friend or colleague?
You then track the results like this:
- People who respond with 9 or 10 are Promoters: They are crazy about you and evangelize you.
- People who respond with 7 or 8 are Passives: They offer neither “shout out” nor “smack talk.”
- People who respond with 6 or lower are Detractors: They just may speak poorly of you to others.
To figure out your NPS, you drop the passives and then subtract the percentage of detractors from the percentage of promoters. Like this: NPS = %Promoters – %Detractors
So what is a GOOD score? Well, that can depend on your industry. For example, the top NPS score for a computer hardware vendor in 2010 was Apple at 78%. By contrast, BlueCross BlueShield of Illinois had a score of 5%, but this was the HIGHEST among all Health Insurance companies.
So why am I telling you all this? Well, at this moment, I’m typing from the Net Promoter Conference in Miami. And I am excited about how much opportunity there is to listen, respond and improve.
I am excited to learn even more about the close correlations between NPS scores and profitability. I’m looking forward to understanding why so many companies are in Denial about how their customers feel.
There is much to learn and much to share, on our common quest to ably serve our customers. If you have a story to tell about an NPS success or an NPS fiasco, I’d LOVE to hear about it here.