The Power of the NPS

Have you been asked the ultimate question yet?

No, not the "big" question. I'm not your mother nagging about your single status. The "ultimate" question.

I've spent a great deal of time lately doing NPS surveys. NP... huh? Net Promoter Score.

Monitoring our Net Promoter Score is Kaneva’s customer satisfaction indicator, a reliable indicator of the company’s ability to grow. We systematically survey and categorize customers into Promoters, Passives and Detractors, based on their answer to a single, “how likely are you to recommend” question and 0-10 point rating scale.

Often referred to as, the ultimate question, NPS is a quick barometer of brand or product perception wrapped up with customer satisfaction into one easily digestible number for CEO consumption.

• Promoters (9 or 10): loyal enthusiasts, urge others and fuel growth
• Passives (7 or 8): satisfied, but don’t help growth
• Detractors (0 through 6): unhappy, can damage the brand and impede growth

To calculate your company's Net Promoter Score (NPS), take the percentage of customers who are promoters (those who are highly likely to recommend your company or products), and subtract the percentage who are detractors (those who are less likely to recommend your company or products).

% of Promoters - % of Detractors = Net Promoter Score (NPS)

The Power of the NPS
The NPS provides the means for gauging performance, establishing accountability, and prioritizing investments because it connects to growth. If a company's "growth engine" were running at perfect efficiency, it would convert 100% of its customers into promoters. The worst possible engine would convert 100% of its customers into detractors.

How Do Companies Stack Up on This Measurement?
Those with the most efficient growth engines - companies such as Amazon.com, eBay, Costco, Vanguard, and Dell - operate at NPS efficiency ratings of 50 to 80%; the average company 5-10%.

NPS All-Stars from the guy who wrote the book - literally

USAA	82%
HomeBanc*	81%
Harley-Davidson	81%
Costco	79%
Amazon	73%
Chick-Fil-A*	72%
Ebay	71%
Vanguard	70%
SAS	66%
Apple	66%
Intuit	58%
Cisco	57%
Federal Express	56%
Southwest Airlines	51%
American Express	50%
Commerce Bank	50%
Dell	50%
Adobe	48%
Electronic Arts	48%