Insights


7 September 2015

Megan Stewart

Senior Executive

Do you know what your employees and customers are saying about your company? You might have a gut feeling that your staff are happy (or unhappy), that your customers are satisfied (or unsatisfied), but how do you actually know? Up until now, it has been difficult to measure and track employee engagement and customer satisfaction. The Net Promoter Score (“NPS”) effectively fills that void.

The NPS was originally developed by Bain & Company and is a simple way of knowing where you stand with your employees and customers alike. The beauty of the NPS is that it’s standardized, so companies can compare their NPS against their competitors (if publicly available), and track their progress over time by asking the same, standardized questions. It also creates an opportunity for clear feedback and other business specific questions if necessary.

The NPS falls between -100% and +100% and is calculated by splitting people into three camps – promoters, passives and detractors. All are asked how likely it is they would recommend the company on a scale of 0 to 10, with 0 being highly unlikely and 10 being highly likely. Promoters (9-10) are loyal enthusiasts who will promote your company/product via word of mouth, the more of these, the better your score will be. Passives (7-8) are generally satisfied, but are vulnerable to competitive offerings, and are neither benefiting nor harming your brand. Detractors (0-6) are unhappy and can potentially damage your brand via negative word of mouth. The more detractors, the worse your score will be.

Although the methodology for calculating the NPS is the same for both employees and customers, the delivery should be tailored to ensure both parties are comfortable providing feedback. When it comes to employees, their employer is more often than not in the position of power, whereas the reverse is true for customers.

Employee NPS – Confidentiality is king
Getting candid feedback from employees can be difficult. Having the NPS survey facilitated by a third party with individual results remaining anonymous can ease employee concerns about anonymity and ultimately provide employers with feedback they might otherwise not receive.

Customer NPS – Close the loop
Unless your survey is confidential, customers should be contacted after providing their feedback. Promoters should be thanked, passives should be asked what could be done to turn them into a 9 or 10 (promoter), and detractors concerns should be clarified and if possible, rectified.

Ultimately, the NPS is a simplistic way to keep an eye on the pulse of your business, both inside and out. Wouldn’t it be nice to know your score?

If you would like to find out how to develop your own tailored NPS survey solution, feel free to get in touch on mstewart@vantageperformance.com.au



Megan Stewart

Senior Executive

I add value to my clients by bringing a fresh perspective to the table.

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