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What is a Net Promoter Score (and Why Should You Care)?

Updated: Nov 25, 2023

When it comes to running a successful business, measuring certain metrics is key. You want to be sure that you and your team are making the necessary progress toward the goals you have set. One of the most important things to measure is something known as a Net Promoter Score, or NPS for short. Here at DVMelite, we routinely utilize the NPS system to monitor and manage our team’s performance. If you’re not yet familiar with this diagnostic tool, here’s the scoop on how you can leverage it for your own practice.

What is an NPS?

The Net Promoter Score is basically an index that ranges from -100 to 100 and is designed to determine the willingness of customers to recommend a company’s products or services to others. In other words, it’s a tool to gauge satisfaction level from the perspective of your clients. The higher your NPS, the healthier your business is, and vice versa. 

According to the creators of the net promoter system, businesses that experience long-term profitability and growth have an NPS that is double that of average companies. 

How does NPS work?

On a scale of 1 to 10, how likely are you to recommend this business to a friend or family member? This is the ultimate question to help you determine how happy your clients are. By leveraging a simple scoring system, you can much more easily quantify your practice’s performance. This quantification can then be used to turn client feedback into actionable activities to improve your processes, policies and service levels.

Within the NPS system, participants are grouped into three categories:

Promoters – Individuals who are loyal to your business and would be more than happy to sing your praises to their own personal networks. More than 80% of business referrals are generated by people who fall into this group.  

Neutrals – These clients are referred to as individuals who are “passively satisfied.” They are your middle-of-the-road clients who are happy with your services, but hold no particular devotion to you. A competitor offering a good incentive could easily draw people in this group away from your practice.

Detractors – The third group includes people who have done business with you and had a negative experience. Just as 80% of referrals come from promoters, 80% of negative reviews come from detractors.

How is NPS calculated?

Determining your Net Promoter Score is relatively straightforward. Simply subtract the percentage of your detractors from the percentage of your promoters. (Neutrals can be disregarded.)

% of Promoters – % of Detractors = NPS

To break this down to a practical example, let’s say your practice sends out a satisfaction survey to all clients who have done business with you in the past 6 months. Of the completed surveys you get back, you determine that 84% fall within the promoter range, 11% fall into the neutral range and the remaining 5% could be considered detractors.

Using the above formula, this would give you an NPS of 79 (84% – 5%). 

How NPS can help your practice grow?

The primary purpose behind the net promoter system is to establish a link between NPS and business growth. Tracking your Net Promoter Score helps you quickly pinpoint areas where you are doing well, and areas where improvements can and should be made. Essentially, it’s an opportunity to routinely check the pulse of your clientele and work on continuous process improvements within your practice. 

The more you work to make things better, the higher your percentage of promoters will go, and the more prospects you’ll ultimately attract, thereby steadily growing your business.

Achieving this requires proactive NPS monitoring. If you receive a negative response from a survey, you should use it as an opportunity to let your clients know that their concerns have been heard and you are actively taking measures to correct exisiting issues. Providing a personal touch like this can help turn a negative into a positive, which can in turn boost your NPS.

And, of course, be sure to keep the client experience at the center of your team’s focus. The better you serve your clients, the more likely they’ll be to not only keep coming back, but also recommend your practice to others. As your NPS rises, so will your referrals.

Have more questions about Net Promoter Scores, or need help creating a plan to measure yours? Get in touch with our team today. Our Practice Growth Specialists are here to help!

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