net promoter score at VergeIO

By Verge.IO

Jeff Campbell, our Customer Success Manager is launching Net Promoter Score (NPS) to track our customer satisfaction.

Net Promoter Score is from the book “The Ultimate Question 2.0” by Fred Reichheld and Rob Markey. Their website is here.

NPS is based on one simple question of our customer. “How likely are you to recommend us to a friend or colleague?” The authors discovered that the answer to this question correlated highly to a companies financial results. For recurring revenue models, where churn is very costly, this is especially true.

The answer is given from a range of 1 – not likely at all to recommend to 10 which is definitely would recommend. The people who rate you 9 or 10 are “promoters”. While those who rate you 7-8 are neutral and those who rate you 1 to 6 are “demoters”.

The % of the people who recommend is your promoter score. The % of respondents who demote you is your demoter score.

The “Net” promoter score is then your promoter percentage minus your demoter percentage.

So, if you ask 1000 people and 720 answer with a 9 or 10, your promoter percentage is 72%.

If 300 answer with a 6 or less, your demoter percentage is 30%. Therefore your Net Promoter score is 72% minus 30% which is 42%.

Many brands across many industries use NPS. This gives us a way to benchmark ourselves against the best brands in the world, not just our competitors.

For example, Apple, USAA and other high performing brands have NPS scores in the 80s and 90s. Some have a score of less than 0, meaning they have more demoters than promoters.

IT industries average in the low 20s. The highest performing ones operate in the 80s, but many float just above 0. Click here for other benchmarks.

So, stay tuned for our surveys. We will survey everyone one of our users at every one of our customers every quarter.

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