Why Use Net Promoter Score ™ (NPS) to increase customer satisfaction

Do you know what proportion of your customers would recommend your product or services to their friends? And does this number outweigh those people who have had a bad experience with your company? The difference between these two numbers is known as your Net Promoter Score and is one of the most vital pieces of data that will determine your future growth as many VirtuaTell clients know.

To calculate the Net Promoter Score your customers are divided into three groups depending on their scoes following a field visit or a call to your customer service department: There are ‘Promoters’ who are loyal to one brand and enthusiastically encourage their friends and work colleagues to use your business. Some are ‘Passive’ consumers whose custom can be courted by special offers and lower prices. And finally there will be ‘Detractors’ – who have had a bad experience with the company that has not been rectified – who will dissuade those they know from shopping with you. The more Promoters you have in comparison to Detractors, the higher your Net Promoter Score will be.

According to Bain & Company, Fred Reichheld and colleagues were researching how to improve customer satisfaction surveys, to ensure that the lessons learned from their results could be communicated to front-line staff and actioned much quicker than they currently were. After analysing the data and testing a variety of responses they discovered there was one, ultimate question which delivered the most trustworthy results:

When they asked customers the ‘ultimate question’ their responses powerfully correlated to predicting future repurchasing behaviour. Companies who knew the answer to the ‘ultimate question’ could predict the loyalty of their customers, and therefore predict future growth.

The Net Promoter Score of Amazon, Rackspace, Harley Davidson and Dell (all stable, growing businesses) are all between 50 and 80 percent, meaning that their satisfied customer are helping to market your business for you, for free!

If you want to join the elite group of efficient businesses with a satisfied and growing customer base you too need contact VirtuaTell to learn how to maximise the capture of your own Net Promoter Score and establish a deeper understanding of your customer relationships and help communicate this vital information to your customer facing staff.

Use VirtuaTell and the Ultimate Question to grow your ultimate business!


Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld