Net Promoter Score: Why service providers should be asking the “ultimate” question
You are probably monitoring reviews on your website and other sites like Google, Facebook and Yelp. You may even know your star rating on these sites at any given time. But do you know what percentage of your overall customer base would actually recommend your business? What about those customers who haven’t even told you they are unhappy, who may actually be damaging your business’s reputation? This is where Net Promoter Score (NPS) comes in.
If you are unfamiliar with NPS, it was introduced in 2003 by Fred Reichheld of Bain & Company, and Satmetrix as a way to measure loyalty between a provider and a consumer1. If you’ve ever answered the question “How likely is it that you would recommend our company/product/service to a friend or colleague?”, you’ve provided a Net Promoter Score. Answers are given on a scale of 0 to 10, with 10 being extremely likely to recommend. Net Promoter Score is calculated by subtracting the detractors (those who answered 0-6) from promoters (those who answered a 9 or 10) and dividing by the total number of respondents. Those who answer a 7 or 8 are considered Passives. The overall NPS scale runs from -100 to +100. The higher the score the better, but depending on the industry just being on the positive end of the spectrum (a score above 0) may be considered very good.
The simplicity and wide use of NPS offers a number of benefits:
- The ability to benchmark your score against others
- One easy-to-understand metric to rally your staff around striving to improve
- A metric you can use to help market your business, once you achieve a number you are proud of
In a service business like pest control or lawn care, referrals are often the number one source of leads. Knowing who your promoters (and detractors) are and what your overall score is is critical and can really help you work to improving your business.
At F&W, when we first decided to start collecting Service Reviews and NPS, we had serious apprehension. While we always assumed our staff was providing top-notch service, you truly don’t know until you collect the data from your clients directly. We were extremely pleased that our PMP’s were delivering to service they had been trained to provide.
Being new to NPS, we had no idea where to set the benchmark for our team. After doing a little research on other industries and their scores, I was very pleased with the NPS of 88 that we have been averaging since starting. As a comparison, Auto Insurance Companies are on the high side with an average NPS of 44, and Satellite/Cable Companies come in with a pathetic NPS of only 7.
We’re also very pleased to now have NPS available right on the location screen within PestPac. When our customer service team is working with a customer, knowing their NPS helps provide insight, especially if they're a detractor, passive or in jeopardy of cancelling.
Implementing an NPS program in your business shouldn’t be difficult and there are many tools that can help you administer NPS surveys. WorkWave offers a survey tool with a built-in NPS question. This makes it easy to survey your entire customer base in just a few clicks and watch the responses roll in. Happy surveying!
NPS®, Net Promoter® and Net Promoter® Score are registered trademarks of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld.1. https://en.wikipedia.org/wiki/Net_Promoter↩