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Net Promoter Scores: What Do the Numbers Really Mean?

By December 19, 2019 No Comments

Meta Description: net promoter score is a universal measure of excellence for service proving companies. It gives a number to how satisfied a customer is with the service.

There are several ways a company can extract the feedback from its customers, but measuring them is not something that is not easy. Moreover, it is challenging for a company to know what is the probability that a customer will recommend the company’s services to others in their social circle.

If two of your customers say that the service they got was good or satisfactory, both will have a different meaning, which is almost impossible for a company to understand.

It was due to these factors the service providers were looking for a way that could help them measure customer satisfaction and loyalty. Different companies around the world have different meanings to the same terms.

Understanding Net Promoter Scores


The industry came up with a smart solution for measuring customer satisfaction and for calculating the probability of a customer recommending the service to others, which is Net Promoter Scores. Net Promoter Scores that most of the people know as NPS has brought all company’s from around the glove in complete synchronization in regards to measuring customer satisfaction.

The concept of NPS revolves around one factor, and that is how likely is a customer to recommend the firm to someone in their social circle. Net Promoter Score is an exceptionally helpful tool that is benefiting all major industries, specifically the staffing industry.

Calculating the Net Promoter Score


To calculate the Net Promoter Score, a company has to survey the customers on one question. The customer has to rate on an 11-point scale the likelihood of them recommending to the company’s service to a friend or a colleague. A customer can rate from 0 to 10, 0 meaning not likely at all and ten meaning extremely likely.

The results of the survey are then used to classify the customer in three categories that are Detractors that rate the company below six, Passive that rate the company at 7 or 8, and the promoters that give a rating higher than 8.

The Net Promoter Score is calculating using the scores given by the customers. The company can subtract the percentage detractors from the percentage of promoters. The results are within the range of -100 to 100, and it is Net Promoter Score.

The True Meaning of NPS


The Net Promoter Score highlights the correlation between the two most essential factors for a service provider that are customer retention and revenue growth. The higher the NPS is, the better are the chances of a staffing company to attract a healthy pipeline of talent, fill job orders within deadlines, and expand the business. An NPS score higher than 50% is an excellent score, and it touches or exceeds 70% it is a world-class score.

It is a simple universal measure of excellence for companies. It helps staffing companies enhance their services and build a strong reputation in the market!

 

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