• Celina

What is a net promoter score and why you need one

I’m going to let you in on a little secret: the #1 metric you should be tracking as you grow your business isn’t the amount of revenues you have, the amount of traffic to your site or the number of followers on social media. The best metric for any growing business to follow that will help you identify if you are on the path to success or failure is your Net Promoter Score. Not sure what that is? Keep reading to find out.

Every company strives to create loyal, satisfied customers who blog, post and tweet about how amazing they are to their followers.

Customer satisfaction should be a top priority for all businesses, and while some companies take the route of paying their followers and posting promoted content or reviews on their site, that is a short term strategy that will not guarantee success in the long run.

Word of mouth referrals and positive recommendations have an ENORMOUS impact on a business, even more so when they are establishing themselves in the market.


Because they help widen a customer base, bring in new prospects and reach new demographics that the business might not have thought to target or is missing with their current demand generation marketing strategies.

83% of consumers trust recommendations from their family and friends when they make a purchasing decision. 

Source: Nielsen.

This makes word of mouth the most trusted form of advertising. Think about it-- how many times have you made a decision to try a new restaurant, buy a new face cream or hire a consultant?

Because we have so many choices nowadays, when it comes to buying a new product or service, positive reviews can either make or break a company.

That’s where a Net Promoter Score comes in.

What is it?

Net Promoter Score (NPS) is a metric for measuring customer satisfaction and how likely your customer is to recommend your product to their family or friends.

The way you calculate it is by asking your customers, “On a scale of 0 -10, how likely are you to recommend [your business] to a friend?”

Using a Lichert scale allows the respondent to be very specific about the likelihood of their referral, which is important for you as the business owner to understand, because just like there are many different types of brands in this world, there are different types of promoters.

Promoters (8-10) are loyal to your brand.

They love you, they repeatedly purchase from you and are already talking about you to their family, friends and on social media. 

Passives (5-7) like your products, but not to the point that they would recommend them to others. You want to invest in this segment because they can be influenced to become a promoter with either excellent customer service, discounts off future purchased or with some other type of positive experience that will make them fall in love with your brand.

Detractors (0-5) are customers who had a bad experience and are likely to recommend that their family AVOID your brand at all costs. They don’t believe in your vision, don’t see the value in your services and could ultimately damage your brand by spreading word of their experiences or leaving negative comments on your pages.

To calculate your NPS, follow this formula: % of promoters - % detractors

So if your customer base is 80% promoters and 10% detractors, your NPS is 70, which is actually pretty good (75 and up is a healthy NPS). 

Why should you care about NPS?

Besides giving you a better understanding of how your customers view you, NPS can:

Provide a goal for you to focus on

This will give you the chance to improve your customer experience and loyalty, which will increase your followers. Benchmark your progress by sending quarterly surveys to everyone on your email list, and include a coupon code or some kind of incentive in the email to incentivize them to fill it out.

Give you insights about your customers behavior

NPS tells you how your customers interact with your business. What do they repeatedly purchase? What don’t they like? What products would they recommend to a friend and why?

Allows you to plan for future changes

I tell my clients to add NPS labels to their customer personas whenever they are thinking about making a change to their business, which could be raising prices, changing a product feature or adding a new offering to their portfolio.

Knowing your NPS will provide clarity on how your customers will react so you can plan your messaging in your marketing campaigns in order to retain them, increase their loyalty or win them back. 

How should you track your NPS?

This is super easy: create a survey that you can deliver to your email list with a space for comments at the end. It can be 1 simple question, or you can dive a bit deeper if you want more information and ask questions like:

  • Which product/service do you like the most?

  • Which product/service do you like the most?

  • Which product/service are you most likely to recommend to a friend?

  • Why do you love our brand?

And leave a space for comments in the end-- this will be the most valuable piece of information--not only does it allow your customers to feel heard, but it will give you great insights into what your most devoted customers love about your business, and what the detractors think you can improve upon.

Take time to analyze your results and then ACT on them. If there are consistent pain points, fix them. If there are glowing reviews, post them on your social channels and give the reviewer a shout out. Or respond to them personally with a thank you and letting them know how much you value their business.

And finally, if you don’t have a large email list or you are still  a new business, ask your customers to leave you a review. Reviews are very illuminating and will tell  you how your brand is perceived. Make sure to respond to each comment so customers are encouraged to leave more reviews in the future, and use your findings to improve your business.

Make it your goal to encourage customers to refer your business. Referred customers have a higher lifetime value, lower churn rate and take much less time to go through your sales cycle, making it a lot easier for you to convert them into a sale. Give referral codes that they can share with their network, and reward them when they do bring in referrals.

A healthy pipeline is made up of marketing campaigns to bring in new leads, sales funnels that keeping track of repeat customers and word of mouth referrals to increase your organic growth. Use your NPS to improve your sales pipeline as a whole and you’ll see longterm growth next year.

Understanding your NPS will be one of the best business decisions you make for 2020, I guarantee it.

And if you need help with the survey creation or. strategy, I am an EXPERT at branding and communications, and would love to set up a completely free discovery call with you to help you. Head over to my website and put some time on my calendar.

Get Inspired

Keep checking back in weekly to stay up to date on all the latest content, as well as to get inspired as you grow what you love. If you liked this post, please share it on your social media accounts, and leave a comment below! Please email me (hello@ascentiagrowth.com) if you have any questions, or are interested in working with me to help you build what you love.


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