[Update: Since I drafted this article Net Promoter announced SparkScore to take into consideration Facebook & Twitter as part of Net Promoter Scores.]
Contrary to a popular misconception the Net Promoter Score does not stand for INTERNet Promoter Score. However, it is back in favour with those looking to measure online programs again, particularly Social & Word-Of-Mouth activity.
Here’s a quick summary to help you get to get to grips with what it is and how it could apply to your Social Media marketing.
What is the Net Promoter Score?
Originating out of Bain & Company the Net Promoter Score was created as a customer loyalty metric to simply measure how many Promoters or Detractors a company had.
Customers are asked the single question
“How likely is it that you would recommend our company to a friend or colleague?” and asked to rank their responses on a 0 – 10 scale where 10 = “extremely likely” and 0 = “not at all likely.
Net Promoter Score Calculation
Once you have those responses you don’t need to be a maths whizz either to calculate the results.
Take the percentage of customers who are promoters (P) and subtract the percentage who are detractors (D). This equation is the Net Promoter Score for a company.
P – D = NPS
What does the NPS mean for Social Media?
The Net Promoter Score (NPS) had a refresh towards the end of last year when Fred Reichheld released “The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World”
And the role of Social Media to the new NPS?
- Increases visibility of organic company sentiment & opinions
- Facilitates a platform to engage with Detractors (and Promoters, possibly to reward)
- Offers the potential to deploy customers surveys faster and more easily
- Data can create a complete feedback loop across the business
5 ways brands can use or reshape the NPS with Social Media
- Sentiment as NPS: Conversocial has proposed a new social net promoter score and agency Razorfish has already piloted work with TNS/Cymfony to capture social media content and the net sentiment of a brand as far back as 2009
- Customer Service programs: Fresh Networks highlights Twitter as a quick win to improve customer satisfaction and track results
- Provide promoters with tools: From the Facebook like button to enabling ratings & reviews; actioning NPS insight could be as simple as integrating social/interactive tools like Feefo into your corporate site. This would enable recruiting and amplifying Promoters
- Social Loyalty Programs: Identify, reward, retain and, er, promote Promoters. The Dominos/Foursquare tie-in is a great example of how this looks in practice
- Engage with Detractors: NPS looks at Detractors and how they can be neutralised or converted into Promoters. There’s no shortage of platforms now integrating Social software so that Customer Service or Product Managers can quickly get to a detractor and either change their opinion or minimise their impact. Conversocial and Radian6/Salesforce are both examples of these