Net Promoter Score Now in Place
HSG has been tracking customer scores for our affiliates for many years and many of the tracking systems were set up according to specific carriers or specific markets. Each of the methods used for calculation was slightly different therefore, HSG has been attempting to bring all the different ‘scales’ into an updated format. Our first upgrade was similar to the Net Promoter Score system, but it was not a true match. Multiple questions were being used and averaged. The Net Promoter Score focuses on a single question or question format. Example: Would you recommend this provider to your friends and family? The customer is given a scale of 1-10 and the number they select is recorded for the Net Promoter Score.
Now that the questions and calculations have been updated, we use a true Net Promoter Score for all score cards and reports. As previously mentioned, the scale is still 1 to 10 for the customer, but the final score is calculated differently. The Net Promoter Score (NPS) is comprised of Promoters, Detractors, and Passives. Promoters are those who respond with a score of 9 or 10. Detractors are those who respond with a score of 0 to 6. Passives are those that respond with a 7 or 8.
The NPS is calculated by subtracting the percentage of customers who are Detractors from the percentage of customers who are Promoters. Example: 5 customers are Promoters, 3 are Passives, and 2 are Detractors. Total number of scores is 10, which is 100% of the responses. 5 Promoters are 50% of the total responses. 2 Detractors are 20% of the total responses. Promoters (50%) minus Detractors (20%) equals (30%). The NPS would be 30% or simply a score of 30. NPS can range from -100, (all detractors), to +100, (all promoters).