What is NPS?
NPS is the leading measure of customer loyalty and one of the leading growth indicators.
Net Promoter Score (NPS®) has become the international standard for measuring customer loyalty due to is simplicity, that makes it easy for everyone to understand and possible to share and compare results, and the extensive research that has shown a linear relationship between NPS and growth.
Net Promoter Score (NPS®) is also called “The Ultimate Question” because it asks a single question:
”How likely is it that you would recommend … to a friend or colleague?”
The question is build on scientific data and testing of multiple questions, to find the most suitable to describe customer loyalty. It has been scientifically proven that there is a correlation between economic growth and customer loyalty. An increase of loyal customers will simultaneously lead to economic growth. Also, asking only one question enables a comparison across, customer segments, companies industries and time.
Using a 0-10 scale, respondents are grouped as follows:
- Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
- Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
- Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
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).
eNPS – employee net promoter score
Very few companies and organizations can achieve or sustain high customer loyalty without equivalent loyal, engaged employees. Engaged, enthusiastic employees sparkle and contaminate their surrounding employees and customers with positive impressions. They approach the job with energy – which enhances productivity – and come up with creative and innovative ideas for product, process and service improvements.
Top motivated employees are strong ambassadors for the organization and company – both externally and internally.
- Internally – lead the way when new initiatives have to be launched
- Externally – rubs off the good and positive experiences
Leaders therefore need their finger firmly on the pulse of its employee’s loyalty and enthusiasm.
Net Promoter Score is the ideal choice for measuring customer loyalty; likewise, it is the ideal choice for measuring employee satisfaction and loyalty within an organization or company.
eNPS is an effective tool for measuring employee satisfaction and loyalty
The employees are also asked to answer an open question, beside the rating-question, which allows the employee to follow up the rating with useful feedback and recommendations. Despite the simplicity the employees hugely value the open question, which also adds a lot of value to the survey results, as it gives the employer specific, actionable feedback.
”How likely is it that you would recommend … as an employer to a friend or acquaintance?”
Instead of the traditional once-a-year employee survey, which contains numerous questions that later have to be analyzed, eNPS allows you to continuously send out short and simple surveys and receive real-time open, honest feedback about the employees current state and continuous feedback of what is happening within the organization. By shortening the intervals of the survey, the employer are able to react quickly on any challenges or problems within the organization and to support continuous coaching, action and improvement. This means that employee satisfaction and loyalty are constantly kept high, which has a direct effect on the customer loyalty.