Net Promoter scores good business (the math behind brand loyalty)

Net Promoter scores good business (the math behind brand loyalty)
Mark Engelmann
Mark Engelmann
    3 minute read

Ever wonder what your clients are thinking about your business--enough to really tell whether they’ll be behind your brand for the long haul? Net Promoter Score (NPS) promises to help you assess whether your customers love your company so much that they’ll recommend it to family, friends and colleagues, thereby helping your brand snowball into a household name.

There is nothing like having a loyal fan base of clients or customers that fully support your products and services. Having enthusiastic followers allows you to expand by word-of-mouth marketing that inevitably spells good business. All in all, Net Promoter Scores also build your reputation and your credibility in your industry.

How it works

Net Promoter Score is a tool to measure how committed a patron is to your business by asking the question “How likely is it that you would recommend our company/product/service to a friend or colleague?” Subsequent answers to the query will then help categorise your consumers into Promoters (the most ardent devotees), Neutrals (the ambivalent crowd) and Detractors (the cynical critics). It is easy to use--all one has to do is to survey your consumers and rate their “likelihood to recommend” impulses between a scale of 1-10. By subtracting the percentage of Detractors from the Promoters, the end amount then identifies your NPS. You can now group and track the population of consumers that your business gets and lead you into making decisions about how to improve customer relations.

Customer satisfaction scale detractors' neutral promoters

The metric was developed by Frederick Reichheld alongside Bain & Company and Satmetrix. His research was published in the Harvard Business Review in 2003, thereafter publishing books and manuals to aid managers and business owners to use the system in their own customer relations evaluations and improve brand loyalty. NPS also serves as an alternative to typical customer service questionnaires in that it may even be used to predict consumer faithfulness and zeal in relation to business growth. The general idea is that customer satisfaction is often misconstrued as an indicator of a successful company when in reality, there are many satisfied consumers who easily get swayed into switching to other competitors’ products and their services.

Attracting Promoters and Repelling Detractors

Simply put, by using the NPS to constantly monitor the number of Promoters and to aid in honing the company procedures in dealing with client needs and expectations, then it will produce and sustain good business in the long run. Profiling your loyal customer base and engaging them in the company’s success through rewards or other benefits will help in tracking the success rate of those programs and consequently measure the growth of the business based on customer fidelity.

What NPS can do for your business

Since the system is able to quantify the devoutness of clients to your brand, then the data derived from your NPS may even be able to forecast how much revenue a company can earn throughout a customer’s lifetime.

Aside from this, the scores can also rate and pit your company’s Promoters percentages to your counterparts within your industry to illustrate how heads and shoulders above you are the competition. Every year Bain releases a report on NPS benchmarkers and findings show that those who are able to claim a 20-point lead compared to their rivals could expect twice the amount of growth in sales than the rest.

In constantly utilising the metrics, say on transactional or a monthly basis, the customer relations team in your company or the management can monitor even in real time what consumer needs are and address the possible problems that arise. The system can also be fine-tuned to accommodate existing customer service policies or practices that are used to help in becoming more efficient in doing business to the public.

Beepo and NPS

Among the multitude of business process outsourcing (BPO) firms, Beepo is one of the few that use the NPS system to ensure client expectations are met and that dependable and long-term business relationships are established. Beepo’s Founder, Aimee Engelmann published recent NPS results and insights on her blog.

Contact us at or call 1300 55 30 80.

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