How the Net Promoter Score Helps You Benchmark Customer Loyalty [INFOGRAPHIC]

by Pamela Vaughan

Date

January 11, 2013 at 9:00 AM

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Just how loyal are your customers? Think about this: A Harvard Business Review study found that 48% of customers who had negative experiences with a company told 10 or more people. Eek! Talk about some bad word of mouth! Not exactly something you want in a business, is it? So if you don't have a clue about how satisfied your customers are with your products or services, you might want to consider putting a system in place to figure out just that.

Luckily, there's a pretty simple survey method to help you determine how loyal your customers are. The Net Promoter Score, or NPS, is a customer satisfaction metric that measures, on a scale of 0-10, the degree to which people would recommend your company to others. To calculate NPS, you subtract the percentage of "detractors" (customers who wouldn't recommend you) from the percentage of "promoters" (customers who would recommend you). Obviously, the fewer detractors, the better. Regularly determining the NPS for your business allows you to establish benchmarks for your business so you can figure out how to improve the loyalty of your customers.

Interested in learning more about how NPS works? Check out the helpful infographic from referral marketing software company Ambassador below for more information, including some industry NPS averages, how some big brands fare, as well as the benefits of building a loyal customer base ... referrals!

(Click infographic to enlarge.)

netpromo infographic

Want to know more about customer loyalty and retention? Then the following HubSpot blog posts are just for you!

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