Have you heard the term “Net Promoter Score” before, or know why companies go through the process of determining their score each year? The general overview is that the Net Promoter Score (NPS) is a customer loyalty metric developed by Fred Reichheld, Bain & Co., and Satmetrix.
For those not familiar at all with NPS, the concept is simple.
The Net Promoter Score is calculated based on responses to a single question: “On a scale from 0-10, how likely is it that you would recommend our company/product/service to a friend or colleague?”
People who answer 0-6 are Detractors. People who answer 7 or 8 are Neutral, and people who answer 9 or 10 are Promoters. Subtract the percentage of detractors from the percentage of promoters and you have your NPS score — the higher the better.
Why NPS works
For context, NPS scores can range from −100 to as high as +100. An NPS that is positive is felt to be good, and an NPS of 50+ is considered excellent. While there are limits to NPS (it can’t tell you why you have promoters vs. detractors), the bottom line is that companies that make the investment to formalize their customer satisfaction level, like NPS, tend to be more in tune with their customer’s needs.
There are four main benefits you receive when your Managed Service Provider (MSP) participates in NPS programs:
- Service level and support alignment – actively requesting a “report card” from customers allows the provider to understand expectations and respond to any issues
- Influence on product and services roadmap – providers that solicit broad and regular feedback tend to have a better handle on new capabilities their customers desire
- Responsive partnership – changes in individual responses over a multi-period time frame empowers the provider to understand the business impact on process and service process changes
- Proactive business strategy – in the event that a customer submits a response that isn’t aligned to the historical NPS score of the provider, you now have a baseline from which to align and implement improvement strategies
These examples show how multi-dimensional the NPS is, and the value it brings to the customer success equation. It’s not hard to understand how MSPs that are fully committed to understanding the voice of their customers, are clearly better aligned to meet the changing needs of their customers and the market.
Why Does the Net Promoter Score Matter to You?
So, what NPS score should you expect from your service provider? Unfortunately, there’s no one-size-fits-all answer besides “positive.”
It’s important to remember that the margin for being a promoter is much thinner than being a detractor. Only two out of 11 numbers on the scale are reserved for promoters…and seven are for detractors. Plus, let’s not forget that people generally tend to be more vocal about their negative experiences than their positive ones.
However, here’s the bottom line: a company’s NPS score will tell you very broadly how well they’re doing in customer success. This can help you determine if they have your best interests in mind and will treat your business with respect – or are just looking to add another name to ledger.
Curious about Symmetry’s 2018 NPS rating? The Symmetry Way is more than just a phrase, it’s our brand promise to customers and encompasses how we operate on a minute-by-minute basis. Our focus on clients first, hiring the best, being highly agile, and leading the market with global scope and service lead to our industry-leading Net Promoter score of 63.