Net Promoter Scoring: How to Measure Customer Satisfaction

Posted in Janitorial Services

What do janitorial companies, manufacturing plants, and financial firms all have in common? They all need to satisfy their customers and employees to continue to grow and succeed. Achieving stellar customer satisfaction is easier said than done, and the only way to improve your efforts is to know where you stand right now. Fortunately, there is a quantitative method for measuring customer satisfaction, known as Net Promoter Scoring (NPS)®.

What is Net Promoter Scoring (NPS)?

Established in 2003 by Fred Reichheld, Bain & Company, Net Promoter Scoring is a numerical measurement of customer satisfaction that can imply a business’s success and growth potential in comparison to its competitors. Since its inception, NPS has been used by several businesses across all industries to gauge the sentiment of customers, employees, partners, and other entities. You may have participated in an NPS calculation without even knowing it, any time you’ve received a survey from a business (or marketing company on their behalf) asking the question, “How likely are you to recommend our service(s)/product(s) to a friend or colleague?” This is the fundamental question used to determine a business’ NPS. A scale is provided to gauge responses to this prompt in a simplified manner. Those who are more likely to recommend that business will select a higher number, and those who are less likely to recommend it will go lower -- anyone who leaves a score of 9 or 10 is deemed a “promoter,” whereas anyone who leaves a score between 0 and 6 is deemed a “detractor.” Those in between (leaving a score of 7 or 8) are “passive” contributors.

Breaking Down the NPS Calculation

To calculate an NPS, a business must simply subtract the percentage of their detractors from the percentage of their promoters. Passives only count toward the total number of respondents. This means the range of possible scores falls between -100 and +100. A score of 0 implies that a business is essentially satisfying half of its base and failing to satisfy the other half. Generally speaking, any score above zero is desirable and deemed “good.” Net Promoter Scores between 50 and 70 are considered “great,” and those above 70 are dubbed “exceptional.”

How Accurate and Effective is Net Promoter Scoring?

Net Promoter Scoring has caught on so quickly for a reason -- this method provides a quick, clean measurement for customer satisfaction without introducing confounding variables. That said, the simplicity of NPS is also part of its problem. The NPS calculation essentially boils down ratings of 0 and 6 as the same thing. Additionally, none of these numbers indicate anything specific, as in “why” a customer would or would not recommend the business to someone else.  If nothing else, NPS encourages businesses to focus on how well they’re meeting the needs of their customers and employees and trace the trends. While the score itself is just a number, it does serve as a basic indication of a business’s performance over time. From there, the business must make tangible efforts to improve outcomes for its customers and employees, which typically requires a more qualitative and granular approach of questioning and analysis.

The Budd Group’s Approach to Customer Satisfaction

Here at The Budd Group, customer satisfaction is the core of our business model. As laid out by our founder, Richard Budd, our motto is this: “Do what you say you’re going to do.” Whether we’re providing our clients with janitorial services, industrial cleaning, facility maintenance, landscaping, etc., our Make it Right Guarantee holds true. We will meet or exceed your expectations in the delivery of high-quality facility support solutions. And if we do not deliver the contracted services to your satisfaction, we will Make It Right. To learn more about our services and values, give us a call today at 800-221-8158!
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