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What is NPS & Why is it Important?

The Net Promoter Score (“NPS”) is an analytical tool which allows businesses to gauge growth paralleled with customer service satisfaction. The tool was introduced by the Harvard Business Review in 2004 and has since become a beneficial benchmarking tool for businesses concerned with increasing market share and improving customer experiences. 

As a business owner, remaining competitive on NPS is a healthy goal; ensuring a higher NPS than your competitor means that you will likely outperform them within the marketplace, improve repeat customer rate, reputation and profits. Plus, it’s incredibly mindful to know exactly where your customers rate your business’s customer service practices. At Wolfgang, we practice what we suggest; we measure NPS monthly. If the percent of promoters is going up or down will determine the success of your business.

NPS is measured via scale, and defined by three types of customers, detractors, passive and promoters, as shown below:

0-6 = Not at all likely (Detractors)
7-8 = Neutral (Passives)
9-10 = Extremely likely (Promoters)

Using the above 0-10 scale we ask our customers the following question:

“How likely is it you would recommend Wolfgang Commercial Painters to a friend or colleague?”

After the initial rating, we ask one additional question to receive further feedback (not mandatory), “Is there one thing that would make doing business with us better?”

From the NPS website: Extensive research has shown that your Net Promoter Score®, or NPS®, acts as a leading indicator of growth. If your organization’s NPS is higher than those of your competitors, you will likely outperform the market, and managing your organization to improve NPS will also improve your business performance. Whether you are aiming for faster growth or increased profits, use NPS as the foundation of a measurement framework that is tightly tied to the customer journey.”

Although at the get go we struggled with a dismal response rate, the longer we use NPS, the better we are able to fine tune our systems to get responses and to perfect our painting customer service. I’d love to know, how does you company gauge customer service?

 
Deana Srdic

About the Author: Deana Srdic

Deana Srdic is the Marketing Manager for Wolfgang Commercial Painters. Deana plans and implements Wolfgang’s annual marketing strategy, manages the website, facilitates the Wolfpack’s digital strategy and plans client events. Deana graduated from Camosun College with a degree in Marketing Communications Management and Leadership, an additional general Business diploma and Management certificate. Deana spends her free time working on her personal blog, lifting weights and actively participating in personal growth coaching. She’s a city girl with a passion for consistency.
 

Wolfgang Commercial Painters

Call (888) WLF-GANG or email service@wolfgangpainters.com

Street Address:

112- 4268 Lozells Ave. Burnaby, BC, V5A 0C6