By Andrew Dalglish - 12th June 2016
Net Promoter Score (NPS) is perhaps the most widely used metric in customer satisfaction and loyalty research. Here at Circle, our view is that NPS isn’t always the best metric in B2B environments (we explain why here), but it does have a role to play. So, assuming it is the right metric for your business, how do you calculate Net Promoter Score (NPS)?
Well, first ask a reliable and representative sample of your customer base how likely they are to recommend you. The traditional NPS question is phrased as follows:
How likely is it that you would recommend [Company] [Product] to a friend or colleague?
Usually the scale used with this question runs from 0 to 10, with 10 labelled as ‘extremely likely to recommend’ and 0 as ‘not at all likely’. Sometimes a 1 to 10 scale is used instead and, whilst there are arguments for and against this, that’s fine too.
However, in B2B markets the NPS question should be adapted to reflect the fact that many business decision makers a) have neither the opportunity nor desire to proactively recommend supplier brands, and b) if they do make a recommendation, it’s rarely to a friend. So when measuring NPS in B2B environments the question should be tweaked slightly:
If a colleague or peer asked your opinion, how likely is it that you would recommend [Company] [Product] to them?
Now take all of your responses and divide them into three groups:
Finally, subtract Detractors from Promoters to give your NPS score, e.g. 40% Promoters – 10% Detractors = NPS of 30. The maximum NPS score is 100 (all Promoters) and the lowest possible score is -100 (all Detractors).
So what does a ‘good’ NPS score look like in B2B markets? Well, having crunched the data from tens-of-thousands of responses to dozens of surveys, all conducted exclusively in B2B environments, we’ve a pretty good view here at Circle. See how you stack up to the B2B NPS benchmarks here.
Read more about our approach to business-to-business (B2B) customer satisfaction surveys.
Andrew has specialised in B2B research for over a decade and co-founded Circle Research in 2006. He is a columnist for B2B Marketing Magazine, a regular contributor to Research Live and frequent speaker at leading events such as the B2B Leaders Forum, Customer Experience Live and the Social Media World Forum. Andrew is a Chartered Member of the MRS, teaches the MRS B2B research course and holds an MA in Psychology from Aberdeen University alongside an MSc in Marketing from Strathclyde University.