How do your customers rate you?

What is NPS?

Net Promoter Score (or NPS for short), is a customer experience and satisfaction metric widely adopted by businesses today. It came about as an alternative to customer surveys and mystery shopping, which were previously the most popular ways capturing and measuring customer experiences.

NPS is a method of easily quantifying the experience between a ‘provider’ and a ‘customer’. A provider can be a business providing goods and services, an employer or another type of entity.

How is NPS calculated?

Customers are asked one simple question – “How likely are you to recommend us to your family and friends?”. The respondent has to grade their experience on a scale of 0-10 (less commonly, other scales are used such as 1-10, 1-5 etc.).

Those responding in the 9-10 range are referred to as Promoters. These are customers who regard their customer experience highly and are likely to promote your brand to others, leading to business growth.

Responders who have scored in the 7-8 range are referred to as Passives and are fairly neutral in their opinion.

Detractors are people who score their experience between 0 and 6 and represent the unhappy customers who can damage your brand with bad publicity and no return business. Identifying detractors and remedying their experience in a positive way is highly beneficial for businesses who can avoid damage to their brand and turn the negative customers around to a good outcome.

Subtracting the percentage of Detractors from the percentage of Promoters will give you the NPS score for your business.

Find out how you can use NPS scores as part of your overall CX strategy using Customer Radar!

How are NPS scores collected?

At Toyota we talk about kaizen, or continuous improvement, and this is one of the core elements of the Toyota Production System. It’s easy to say but how do we actually walk the talk, especially in the eyes of customers?In 2013 Toyota NZ introduced Customer Radar to help us do this. We now get almost instantaneous feedback from more customers than ever before. We can see the results on-line and in real time. Customer Radar has revolutionised our customer feedback process.One of the unique advantages of Customer Radar is that it is so easy for our customers to provide feedback without feeling pressured. In addition to the customer experience insights and benchmarking Customer Radar provides, we also receive live alerts from any dissatisfied customers. The ability to deal with issues quickly and efficiently means we have the opportunity to retain more business by being proactive with customers and demonstrate our commitment to providing the best experience possible.

General Manager Customer Service, Toyota / Lexus

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