What is Net Promoter Score (NPS) and how can it improve results?

What is Net Promoter Score (NPS) And How It Can Improve Results | software businesses

NPS serves as measurable tool to gauge customer satisfaction

Every business is always looking at ways to increase their customer base, but the no.1 thing they can do to keep the machine rolling is making sure their current customers are satisfied. In difficult times, it’s often customer loyalty that will help businesses stay on track. Seeking feedback from customers on a regular basis can help achieve that, as you can then assess any areas you need improvement and know what they love. 

While a good old fashioned phone call or email to a customer asking for feedback can be beneficial, there are now tools that expedite the process in assessing your customer satisfaction, such as your NPS. 

What is NPS?   

NPS is your Net Promoter Score, which is a benchmark for customer satisfaction, particularly how likely they are to recommend your business to a friend. Rather than their perception of a particular purchase or interaction with your company, the NPS measures a customer’s overall sentiment about a brand. 

Not only can NPS be used to measure customer satisfaction, it’s also a tool that can be used to measure employee satisfaction and coincidentally, how likely they are to put in a good word for you as an employer. 

How your NPS is determined 

Calculating your NPS is a very simple process, especially with systems like Delighted (the NPS tool of choice for Aspire Software companies) in place. All you have to do is set up a brief survey or question to be sent to your customers with a question along the lines of “How likely are you to recommend our business to a friend?”. Any score of 0-6 is labeled as a detractor, with 7-8 falling under ‘passives’ and a score of 9-10 is considered a ‘promoter.’ 

Your net score is determined by subtracting the percentage of detractor responses from your promoter responses (passives aren’t factored in). This results in your NPS falling anywhere between –100 and 100%.  

Why you should use NPS 

Simply put, the NPS score is an easy tool to quantify your customer satisfaction rating. If you’re getting positive feedback, it may open up a pleasant dialogue with your customers and you can get a feel for why your brand works for them. You can also show your detractors that their opinion is important to you and that the door is always open for them to let their feelings known. 

If we were to break it down simply, the key benefits of the NPS are: 

  • It comprehensively measures customer loyalty 
  • It identifies potential areas of improvement 
  • More referrals, which lead to more loyal customers 

Final thoughts 

Learning how customers feel about your company as a whole and how they describe your business to others helps you determine ways to improve, as a low score would get you to ask yourself some questions. 

When setting up a survey or questionnaire, make sure to include some space for customers to comment. This can help you learn their particular pain points or where they really feel your business shines. Remember not to take any criticism personally. In the end, you’re asking for this info to give them a better experience in the future. And if they do in fact provide you with feedback and see you’re always making the effort to improve, that’ll go a long way in keeping their business for the long haul.


Buy. Enhance. Grow. Aspire Software’s mission is to acquire and grow vertical software businesses that provide mission-critical solutions in their respective niche or market. Our team of entrepreneurs and business builders have an unwavering commitment to developing our brands and expanding into new markets thanks to its decentralized management strategy and indefinite hold period.   

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