What is a Net Promoter Score?

Contact Center | 3 minute read

Companies use all sorts of metrics and techniques to evaluate their customers’ satisfaction with their products and services. Google reviews, social media activity, and customer service surveys all help companies learn about their customers’ experiences.

Contact centers use a few different metrics to measure customer experience. Floor-level metrics assess the efficiency of the contact center’s operations, and include Average Speed to Answer (ASA), Auxiliary Time, Handle Time, and more. Net Promoter Score is the most common customer satisfaction metric for contact centers.

What is a Net Promoter Score?

A net promoter score (NPS) is a market research metric that measures how likely a customer is to recommend a brand to someone else — be it a friend, family member, or colleague. The score falls on an index between -100 to 100, and measures the overall satisfaction and loyalty of a customer.

Net Promoter scale.

To calculate NPS scores, you must present your customers with a survey question: “How likely are you to recommend our product or service to a friend or colleague?” The answers are scored on a 0-10 scale. Answers can be categorized into three groups;

Promoters (9-10): These customers are satisfied with the product or service. They’re likely to recommend the company to others, and continue to be loyal to the company. Promoters make up 80% of business referrals, and contribute to business growth over time.

Passives (7-8): These customers are neutral. They’re somewhat satisfied with the company’s product or service, but they might switch to a competitor’s product or service with little thought. Passives aren’t likely to promote your company to others, but they’re also not likely to engage in negative word of mouth.

Detractors (0-6): These customers aren’t satisfied with the product or service. Not only are they unlikely to recommend the company to a friend or colleague, but they also might hurt the company’s reputation through negative word of mouth.

Net Promoter calculation.

To calculate your NPS score, subtract the percentage of customers who are detractors from the percentage of customers who are promoters. The number will fall between -100 to 100.

TIP:

% of Promoters – % of Detractors = Net Promoter Score

Why is a Net Promoter Score important?

Companies, including contact centers, use NPS to assess customer satisfaction and loyalty, make improvements to their business services, and grow their business through referrals. To summarize, the main benefits of measuring and achieving high NPS are increased customer loyalty and long-term business growth.

How to leverage Net Promoter Score in your call center.

Luckily, contact centers have access to modern technology that can help them learn more about metrics like Net Promoter Scores, and helps to improve and leverage them.

For example, Fonolo Voice Call-Backs improve customer experience as well as various metrics, including ASA, CSat, and NPS.

Fonolo’s Portal provides data-rich reporting, including metric notifications, reports, and real-time data.

By using technology to assess and monitor metrics like NPS, contact centers can use data to improve their customer service and operations.

 

How to determine the right NPS for your contact center.

The ideal NPS score is relative to your company’s industry. Let’s take a look at some NPS benchmarks for different industries:

Average NPS by Industry in the USA, 2020

  1. Streaming Media – 39
  2. Supermarkets – 34
  3. Airlines – 29
  4. Banks – 21
  5. TV/Internet Services – 0

If you’re a supermarket using competitive benchmarking for your industry, you’ll want your NPS to be higher than average, or 34. Remember, everything is relative. An NPS of 10 would be great for a TV/Internet Service provider given their average, but would be poor for a streaming media business.

Contact center benchmarks vary by industry, so you’ll need to find out what your competitors’ NPS are to see how you compare. Experts say that a range of 0 to 30 is good, while scores over 70 are phenomenal.

Final thoughts.

Net Promoter Scores are one effective metric for assessing your customers’ satisfaction and loyalty to your contact center. These scores are relative to your industry, so competitive benchmarking is the best way to assess whether or not your NPS score stacks up. If you’re interested in learning more about NPS and other metrics for your contact center, book a free demo or watch our short demo video today.

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A Guide to Contact Center Agent Engagement

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A Guide to Contact Center Agent Engagement

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A Guide to Contact Center Agent Engagement

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