3 Reasons Why Your Business Needs A Net Promoter Score

Why does your business need a net promoter score?

  1. Customer Loyalty
  2. Business Goal Measurement
  3. Quality Benchmarking

The most important thing for any business is its customer base. Without it, the business will not experience anything at all. No profit and no growth — just a spiral towards bankruptcy. Nowadays, it’s gotten even harder to keep customers near you because of the pandemic. Very few will be brave enough to go into physical stores, and that’s considering whether they’re open or not. This is why your business needs a net promoter score.

What is a Net Promoter Score?

The net promoter score or NPS is something that was created to help businesses measure customer loyalty. It takes a look at whether your customers would stick to your brand to the point that they would recommend it to others, or switch to the first company that offers something more in line with their goals.

From a technical standpoint, the NPS is an index that ranges from -100 to 100. It measures the customer’s willingness to recommend your brand to their acquaintances, friends, and family. In a way, it also measures how satisfied they are with your business.
The higher your NPS, the higher the satisfaction of your customers. The more satisfied they are, the more likely they will recommend you to others. However, there are those who are also dissatisfied with your business.

Here are three categories of people that can be distinguished through your net promoter score questions:


They give you a low score because they aren’t happy with your business — be it your product or service. They won’t recommend your product, and they might even drop a negative comment.


Passives are those who are 50-50 with you. They are interested in your products but are also willing to experiment with others. They won’t leave negative reviews, but they won’t recommend you either.


They are the ones who are willing to recommend your business and would leave positive reviews on your business. They advocate for your brand. They are the customers you want.

Your NPS can usually be calculated as the percentage of Promoters minus the percentage of Detractors.

Now that you understand the NPS, we can now move forward with the many reasons why your business needs it. Continue reading for more.

Customer Loyalty

Graphics of customers purchasing items

This is what the NPS is all about. Every business needs to understand that customer loyalty is not something that you gain overnight. It is something that you build up in the long run. You can’t force it to happen.

As its name suggests, customer loyalty comes from the customer. You cannot control it by any explicit means. This also means there is no obvious way to measure it except through your NPS. Understand that the index won’t tell you exactly how loyal your customers are. But it would at least give you an idea of how your general customer base sees your company. The higher your NPS, the better your customer satisfaction level is.

Business Goal Measurement

Graphics of a team trying to grow their business

Of course, there are many other uses for the NPS than just a measurement for customer loyalty. Another important use for it is by relating it to your business’s overall growth. It provides a metric that calculates performance through the feedback of the customers. This gives valuable insight because of how it is implemented. The NPS offers honest, true-to-life input of what the customers want—not what the media says they do. There’s nothing better than information straight from your customer base!

On a side note, the NPS also gives you insight into increasing your business awareness through word of mouth. Because of this, it is an excellent indicator of potential growth in the future!

Quality Benchmarking

Graphics of benchmarking

Going back to what we mentioned at the start of this article, your customer base is an essential part of your business. Even with the most detailed and intricate reports discussing the financials, if your information on the customer repertoire is negative, then all is for naught.

When you are starting, it is acceptable that you do not have any insights on customer loyalty. However, down the line, when you focus more on the consistency of service and revenue, the importance of having high customer loyalty skyrockets. This is the reason why most businesses keep track of their customer satisfaction ratio the bigger they get.

Key Takeaway

If you’re still asking yourself why your business needs a net promoter score, then you better find a more in-depth explanation about it because we have already detailed three big reasons why you should keep that in mind.

The biggest thing that NPS gives you is a metric that quantifies your customer loyalty. Without it, your business will hit a plateau in terms of growth. Make sure you study, understand, and implement NPS to your business operations and see how far you can go soon!

Leave a Reply

Your email address will not be published. Required fields are marked *