What is Net Promoter Score and Why is it Important to Business Owners?

A happy and loyal customer is 10X more valuable than a “regular” one. This saying is more relevant and important than ever at this time when customers have numerous choices and every business owner is fighting for their attention and business. Whoever can meet their demand and provide great customer satisfaction will not only survive, but thrive by wiping out the competition. Look no further than the growth of Amazon in the last few years as a proof! Now here is a company that continues to invest in technology and people to make sure their customers get fast delivery, easily navigate the website and receive best customer support. This focus on customer has resulted in Amazon’s dominant position in the digital, and now even physical, marketplace.

How can you measure customer satisfaction?

If customer satisfaction is so important how can you make sure your business stays in the forefront? Well, the first order of business is understanding how your business stacks up in customer satisfaction metric. If you don’t know how well you are doing with customer satisfaction you cannot make plans to improve it.

There are several ways by which you can measure and report customer satisfaction for your business. The easiest one is determining number of satisfied customers you have. This can be easily done by asking a simple thumbs up / down question to customers at the end of a purchase. You can also go one step further and ask the customers to rate satisfaction on the scale of 1 to 10. The resulting score shows how well you are doing. The most important measure I have come across when it comes to customer satisfaction is NPS Score (Net Promoter Score).

What is Net Promoter Score?

NPS measures how many customers are likely to recommend (promote) your products and services to others. You can measure the NPS for your business by asking this question to customers – how likely are you to recommend the business to their friends and colleagues? If more people recommend your business than not, your NPS will be positive and you are in good shape. If there are equal number of customers who recommend your business as those who do not, your score is neutral and you have some work to do. However, if more customer do not recommend your business than who do the alarm bell needs to go up and you need to start paying close attention to your customer service. Failure to take appropriate action may jeopardize your business in the long-term.

Why NPS is So Important?

If you think about it NPS does an excellent job of measuring customer loyalty. A happy customer is likely to tell 10 others about your business. This not only helps you bring repeat customers, but also get the new ones without having to spend a lot on marketing. Word-of-mouth marketing is the best marketing tool out there and NPS does an excellent job of measuring if your business is likely to achieve the coveted position with customers. NPS Score, while it appears simple, carries lot of insightful information underneath that can determine the future of your business.


In summary, if you are not measuring the NPS Score of your business I encourage you to get started right away by using number of online survey tools available in the market. It doesn’t cost much to measure it and the insights it provides to you can go a long way to building a sustainable business like Amazon.

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