Significance of Net Promoter Score to your business growth

Customer success
Apurva Thrilok Oct 24, 2022

Making customers satisfied is a proven strategy for expanding your business. Expanding your customer base is often as simple as identifying weak spots, and working tirelessly to improve them, all while keeping quality high. However, accomplishing this goal is not without difficulty.

Now one might wonder, Why is your Net Promoter Score important? Customers’ loyalty can be a straightforward indicator of your company’s performance. It’s what the net promoter score (NPS) of a company measures. More significantly, NPS enables you to identify your most committed customers so that you may create your offer with them in mind.

What is the Net Promoter Score?

The loyalty of your customers and their tendency to recommend your products or services to others can be gauged with the help of a metric known as the Net Promoter Score (NPS). The Net Promoter Score (NPS) can assist you to determine which of your customers are advocates for your business and which are detractors. Faithful patrons are invaluable to the success of any business and essential to its survival. New client acquisition is often viewed as more challenging than contract renewal.

Customers rate the company’s likelihood of a recommendation from 0 (not at all likely) to 10 (very probable) on a scale of 0 to 10. Based on their response, customers are sorted into one of three groups according to the NPS concept:

  • Promoters – Customers that give you a 9 or 10 on this question are the ones who are most likely to add value to your business through repeat purchases, feedback, and loyalty.
  • Passives – Those who have rated their satisfaction between 7 and 8 are included here. They are happy overall but need more enthusiasm for your product or service and are unlikely to spread the word.
  • Detractors – Customers who give you a rating of 6 or lower had a terrible experience with your brand and won’t avail from you again which might harm your reputation.

How to calculate Net Promoter Score

NPS provides information on the company’s health and potential for future success. NPS is a simple statistic, and its calculation is very straightforward.

The following equation determines how to calculate the net promoter score in practice:

Positive NPS (Promoters) = 100 – Negative NPS (Detractors)

Scores may fall between -100 and 100.

Net Promoter Score

Customers should be asked about how likely they are to suggest your business, but the NPS satisfaction survey should also offer an optional blank place where respondents can give more detail if they so choose.

The importance of the net promoter score is generated based on this evaluation. If you have more supporters than detractors, it indicates that you have more happy customers than dissatisfied ones and that these customers are more likely to remain your customers. These details of how to use and implement net promoter score will aid in providing direction for the adjustments you make to enhance your goods or services.

Top 5 Benefits of Using Net Promoter Score

To evaluate the everyday success of your company there are a variety of metrics available. The importance of Net Promoter Score, however, is among the most potent, flexible, and underappreciated metrics.

Acknowledge critics

The NPS survey is useful since it can help you pinpoint unhappy consumers. It doesn’t matter how meticulously you planned and executed, a single misstep might wipe out your hard-won customer. Your brand’s reputation can be instantly ruined by one negative interaction. Dissatisfied clients are three times more likely to tell others about their negative experiences than satisfied ones. No company would ever take that kind of a chance with its name and bottom line. That’s why Net Promoter Score is important.

When you’ve recognized your detractors, the next step is to learn what’s making them unhappy. Clarity on what exactly they want you to work on is essential. How well you’re satisfying your customers can be gauged by their net promoter score (NPS). As a result, a low score indicates that some aspects of your service are falling short of what your customers expect.

Attain new leads

When you identify your most enthusiastic customers, you may ask them nicely whether they would be willing to write a testimonial or recommend your company to others. You can also solicit feedback in the form of ratings and reviews on various online marketplaces and social media channels. To show your appreciation, you can provide a price cut. A recommendation of a business on social media increases the likelihood that the referred friend will purchase that business.

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Prioritize your customers above all else

The very fact that you’re conducting an NPS survey shows customers that you value their feedback. It shows that you care about your customers’ happiness. Your “customers come first” and your company values customer feedback.

Build a line of communication

The Net Promoter Score survey provides a way to interact with current customers. It might provide a foundation for gathering fresh ideas and gaining a deeper comprehension of their needs. It also provides insight into the company’s plans and current status. From there, you can infer the customer’s propensity to stick around for more business. During casual conversation, you can learn if someone nearby is a potential customer and use that information to up-sell or cross-sell to them.

NPS is a useful tool for analyzing customer service.

Both multiple-choice and free-form responses are welcome in the NPS survey. The collected data from the surveys can then be used to produce insightful analytics reports. The descriptive comment can also be subjected to sentiment analysis so that customer behavior patterns can be deduced from the results. Combining the results of a Net Promoter Score survey with information gleaned from user records can reveal how satisfied customers are with various parts of your business, such as the speed and friendliness of customer service, the quality of customer care provided, and so on.


To quickly and easily learn how your consumers feel about your company, use the Net Promoter Score. It might result in the discovery of ways to make their experience better. Today, no company can afford to disregard customer feedback. If you’re interested in finding out more about how to interact with customers to enhance sales, take the NPS survey.

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