If you are looking for an online reputation management platform, it is quite possible that you may have come across the term Net Promoter Score or NPS. NPS has been around since the early 2000’s and many companies have implemented this system to enable more visibility into their customers level of satisfaction with their brand. But what exactly is it and how does it stack up, and is 5starRocket and alternative to NPS? Let’s take a look.
The metric was developed by (and is a registered trademark of) Fred Reichheld, Bain & Company and Satmetrix. It was introduced by Reichheld in his 2003 Harvard Business Review article “One Number You Need to Grow“.
The Net Promoter Score or NPS is an index ranging from -100% to 100% that measures the willingness of patrons to recommend a company’s products or services to others. It is used as a proxy for gauging the overall satisfaction with a company’s product or service and the customer’s loyalty to the brand.
Customers are surveyed on what Reichheld dubbed “the Ultimate Question”. “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?” Based on their rating, customers are then classified in 3 categories: detractors, passives, and promoters. By segmenting your users, you have the opportunity to impact your online reputation management efforts, by driving tailored CTA’s to each persona.
‘Promoters’ answered 9 or 10. They love the company’s products and services. They are the repeat buyers and are likely to recommend the company’s product or service to a friend or a colleague.
‘Passives’ gave a score of 7 or 8. They got what they wanted but nothing more. They could be easily swayed by competitive offers. They probably wouldn’t spread any negative word-of-mouth, but are not enthusiastic enough about your products or services to actually promote them.
‘Detractors’ gave a score lower or equal to 6. They are unhappy customers who can damage your brand by leaving reviews, and impede growth through negative word-of-mouth. Bad reviews matter.
Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can range from a low of -100% (if every customer is a Detractor) to a high of 100% (if every customer is a Promoter).
The Net Promoter System consists of 3 steps, if you are looking for an alternative to NPS, keep reading.
This involves sorting the participants into the 3 categories: detractors, passives, and promoters. In addition to the “Ultimate Question” (“On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?”), customers are usually asked one open-ended question, “What is the reason for your score?”. This gives the company insights into what most affects their client base.
In this step, the company “seeks” to resolve detractor issues with the ultimate goal of converting them into promoters. The company would also seek to mobilize the promoters and encourage them to tell others about their positive experience.
This involves ensuring that all staff members are knowledgeable of NPS and are actively working to improve that metric. Does this all sound a bit complicated and leave you looking for an alternative to NPS?
The NPS System is used by plenty of businesses, and there are several companies offering products in this field. But, there are certainly drawbacks, which is where 5starRocket shines.
The NPS System is a solid tool to monitor experience, and provide customer feedback. However, if you are looking for something more out of your online reputation management tools, considering creating a 5starRocket account as an alternative to NPS is a smart move. Not only does it allows you to monitor your customer experience and provides valuable customer feedback but we’re far more proactive in getting your happy feedback out there. Allowing you to not only enhance experience, but attract new business from potential customers. Read more about getting started with 5starRocket.