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What is Net Promoter Score (NPS), why it's important, and how we compute it.

NPS, or Net Promoter Score, is a simple, quantitative way to track customer satisfaction over time. Measuring NPS over time is a great way to keep your finger on the pulse of the quality of service your team is delivering and to measure process and service improvement initiatives.

Since ALO provides a simple way to survey customers using NPS, in addition to asking for qualitative feedback, we're going to explain how it works.

It starts with a simple question:

On a scale of 0-to-10, how likely is it that you would recommend < your brand > to a friend?

This question lets customers place a value on their experience with your brand. So, the question really being asked boils down to: "is recommending this brand going to elevate or risk your personal position with your friends?"

There are 3 categories of customers:

  • Promoters: scores of 9 or 10 - these are the loyal and enthusiastic customers
  • Passives: scores of 7 or 8 indicate customers that are satisfied with the brand
  • Detractors: scores of 0 to 6 are given by unhappy customers who are unlikely to purchase  again and may even discourage others from using your brand

NPS can range from -100 to 100

We calculate NPS by subtracting the percentage of detractors from the percentage of promoters. In other words, total % of promoters  – total% of detractors = net promoter score

If, for example, 20% of respondents are detractors, 20% are passives and 60% are promoters, your NPS score would be 60-20 = 40. Your NPS can range from -100 to 100.

Yes, NPS can be negative 😔. The ideal score would be 100, based on 100% of customers being promoters.

Qualitative and Quantitative Surveys

NPS is considered a quantitative survey because it is an absolute measurement that can be tracked over time. If your NPS score increases over time, you are improving your customer experience.

Qualitative feedback is like the old school suggestion box, but it’s also very important. Getting feedback in the customer's voice gives you specific details on their interaction with your brand that you can’t get with an NPS score. This enables you to fix those negative experiences.

This is how ALO gathers both qualitative and quantitative on site feedback:

  1. QR codes are posted on signs throughout the facility, with a headline such as: "Please tell us about your experience"
  2. Scanning a code opens a beautiful web form with a text field to enter qualitative feedback
  3. After submitting qualitative feedback, ALO renders the NPS survey for quantitative feedback

ALO's approach to customer feedback gives you the best of both worlds in a very simple and elegant format, making it very easy for your customers to use.