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Why we use the Net Promoter Score

October 14, 2016

Simon Franks
Simon is CandidSky's Client Services Manager with a wealth of expertise gained through managing digital projects for FMCG, sports brands, sponsorships and governing bodies.

Before we begin, I just want to give you a few stats:

  • 80% of your company’s future revenue will come from 20% of your existing customers  (Gartner Group)
  • A 5% increase in customer retention increases profits by up to 95%  (Frederick Reichheld of Bain & Company – the inventor of NPS)
  • The probability of selling to an existing customer is 60% to 70%, the probability of selling to a new prospect is 5% to 20% (Marketing Metrics

So what are you doing to ensure you’re keeping your customers loyal?

Net Promoter Score (NPS)

At CandidSky we implemented a process which involves getting feedback from clients and making changes to improve our output to make clients even happier.

The Net Promoter Score (NPS), is based on a simple question you ask your customers to determine how happy they are with your service:

‘How likely is it that you would recommend [insert your company] to a friend or colleague?’

The customer is asked to give a score from 1-10 with 1 being not likely at all and 10 being extremely likely. Depending on their answers, customers are grouped into three categories:

  • Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth
  • Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings
  • Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth

To get your overall score, you need to subtract the percentage of Detractors from the percentage of Promoters.

Courtesy of https://www.netpromoter.com/know/

Courtesy of www.netpromoter.com/know/

Closing the loop

Getting the NPS score is only the beginning, as collecting a score alone won’t lead to keeping your customers loyal.

The next step is to act on the score to discover why your customers scored you what they did. Once you know the reasons, you have valuable feedback to work with to ensure that you improve your services in relevant areas and keep customers coming back for more.


It’s important to communicate with your clients what you’re doing and why. You want them to know how important they are and that you are constantly looking for ways to improve your service to keep them happy.

Final thought

Measuring your NPS score can be a great early indicator of any issues that need to be addressed and resolved before they become a problem. The stats from Gartner Group, Reichheld and Marketing Metrics are difficult to ignore, and to most of us ring completely true. Anything you can do to keep your existing customers happy will have a huge impact on your bottom line. Not only that, but the feedback you get from existing clients will continually improve your sales process by highlighting your strengths and weaknesses.


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