Net Promoter Score (NPS)

It’s not a new TV or cable network. Small businesses are turning to customer satisfaction and rewarding employees for their NPS scores. It’s s single number that can fluctuate depending on your interactions with customers. Customer satisfaction is rated on 1-10 scale; scores 9-10 are promoters, less than 6 distractors; NPS is %promoters minus % distractors. NPS scores in the 25-50 range are good. NPS was first introduced by Fred Reichheld, a partner at Boston consulting firm, Bain & Co. According to Bain’s research a company’s promoters are responsible for 80% or more of new customer referrals, which is key to increasing revenue.