Even if you’re a novice in the world of customer experience, you’ve very likely encountered Net Promoter Score. As one of the most commonly used metrics in CX, NPS has a value in conversations and comparisons. But where does it value come from? From Promoters, Detractors, and Passives.
NPS Breakdown: Promoter, Detractor, Passive
1. What is a Net Promoter Score Survey?
The NPS scoring option is an extraordinary emotion barometer that can read a brand’s power – product, service, or both – to attract or deflect a targeted audience. In other words, it’s the professional researcher’s go-to #1 reader of customers’ feelings for a commercial value proposition. Why?
- Firstly, an NPS survey is short and simple, built around the answer to one question: “How likely are you to recommend our brand to a friend or family?”
- Secondly, researchers universally agree that the answers to this single question reflect true feelings. Again, why? They put significant weight on:
- Respondents’ (i.e., customers’) likelihood to respect high integrity codes for people who trust their opinion.
- In other words, they wouldn’t risk lying to coveted individuals who depend on friends’ brand guidance.
This article covers respondents’ reactions to the question above, how it categorizes them into response groups (i.e., Promoters, Passives, Detractors), and the implications for your marketing strategies.
2. Definition and Breakdown of NPS Groups
NPS customers can answer the question described above on a rating scale from 0 (“not at all likely”) to 10 (“extremely likely”), boiling down to respondent groups categorized according to how they rated their agreement level:
- 9 or 10 are Promoters (brand advocates or ambassadors).
- 7 or 8 are Passives (neutrals or undecideds).
- 0 to 6 are Detractors (brand antagonists).
3. Understand how Promoters/Detractors/Passives Impact Your Business
Step 1: Calculate your final Net Promoter Score. It’s not complicated:
After excluding Passives from the calculation,
NPS score = % Promoters – % Detractors
Here are the extreme possibilities:
A. When every survey respondent is a Promoter (i.e., Detractors + Passives = zero), your NPS score = 100 (the maximum)
B. When every survey respondent is a Detractor (i.e., Promoters + Passives = zero), your NPS score = -100 (the worst possible NPS)
C. An NPS score of zero occurs in two situations:
- When every survey respondent is a Passive (i.e., Promoters and Detractors = zero).
- When Promoters = Detractors (even with Passives in the mix).
Step 2: From the above, set your objectives to at least equal your industry yardstick NPS metric, engaging customers as one should. Draw on data-driven insights provided by reliable third-party researchers. Here are some helpful extracts of NPS Scores you can expect for some mainstream industries
- B2B
- Consulting: 76
- Technology and Services: 61
- Digital Marketing Agencies: 59
- Logistics and Transportation: 40
- Software and SaaS: 40
- Cloud and Hosting: 39
- Construction: 37
- B2C
- Insurance: 80
- Brick-and-mortar Retail: 64
- eCommerce: 52
- Healthcare: 46
- Media: 30
- Internet Software & Services: 16
Step 3:
1. Attack the strategy defects that push respondents into the Detractor category.
2. Realign your brand propositions to encourage Passives to move up to the Promoter grouping.
In short, altering Passives and Detractors to Promoters is an overwhelming objective. To learn more about how to turn customers into promoters, read on.
Is your NPS alone enough to help you make a difference?
Your NPS score is quantitative data, meaning it’s a valuable measure of emotional intensity. When it rests in negative territory, it signals that your customers, on average, have severe complaints about your brand’s actions to secure their loyalty.
The opposite applies when your NPS is positive. Metrics are helpfully definitive, especially when comparing them to industry averages or set KPI milestones.
Either way, the surveys stop short of telling you why the scores are what they are – the motivations (or drivers) behind the readings.
How do you get to the “Why?”
- Qualitative data feedback is essential to understand the respondents’ feelings that landed them into NPS Promoter / Passive / Detractor groups.
- Fill this gap with a straightforward question added to the one described above: “Can you tell us why you rated (insert the brand or organization name) the way you did in the previous question.“
For example, you may get qualitative feedback like this:
- A Promoter: “I have always received prompt and technically competent advice from your technical support agents on live chat and by phone. I also appreciate your thoughtful loyalty rewards, which provide extra value.”
- A Passive: “I’ve been a customer for just over a year, and I’m unsure if your loyalty rewards represent value for money. Going by your website, it seemed like they would, but it’s not exactly how I envisioned it. Still, it’s too early to tell.”
- A Detractor: “I’ve been using your deodorants and scents for years, but your new lines are for much younger people, not the Baby Boomer generation. I’m bored with the others. Also, recent price hikes don’t seem to represent fair value when compared to loyalty program incentives your competition offers.”
Passives and Detractors hold untapped potential
1. The Danger of Ignoring Passives:
- It’ll skew your loyalty overview: How? Pushing Passives to the side in the NPS score calculation sometimes shifts them from your much-needed strategy attention, thus bypassing realistically viable opportunities to retain customers.
- Passives are extra sensitive to small strategy shifts. What does this imply?:
- Carelessness or lack of Passive-focus in your initiatives can cost you dearly.
- Conversely, subtle but Passive-centric promotions can create lasting loyalty.
- Passives are likely to jump ship if they see no new efforts to engage them.
- Passives in the equation can mislead NPS scores, which I have dealt with above under extreme possibilities. To reiterate, they can:
- Create false loyalty readings in both directions.
- Present a massive hidden risk for your business, especially when emerging as the largest NPS category percentage-wise.
2. The Revenue Threat posed by Detractors:
These are unhappy targeted audiences spreading uncomplimentary comments about your brand or organization. Unflattering word of mouth travels significantly faster and wider than positive reviews.
Jeff Bezos, the CEO of Amazon, famously said, “If you make customers unhappy in the physical world, they might each tell 6 friends. If you make customers unhappy on the Internet, they can each tell 6,000 friends with one message to a newsgroup.”
Detractors are churn energizers, the biggest threat to your ROI. Consider that Customer acquisition costs significantly outweigh retention overheads by five to twenty-five times (according to a Harvard Review).
Bain & Company agrees, stating that NPS Detractors create 80% of swirling negativity in the marketplace grapevine, downgrading your ROI and growth rate.
Are there firm data trends that reflect the benefits of converting Detractors into Promoters, industry by industry? No, but there are mind-boggling examples. For instance, Bain highlighted the case study of Dell (a client at the time), calculating that the NPS Detractors at 15% lost the Company a whopping $68 million of revenue.
Strategies for turning Passives and Detractors into Promoters
1. Compelling Evidence Supporting Promoter Focus
- Staying with the Bain example above, their expert consultants executed an 8% conversion of the Dell Detractor category, adding another $100 million to revenue after recovering the lost $68 million. Such disproportional benefits emphasize that engaging the Detractors head-on is vital to addressing their pain points.
- Esteban Kolsky, ThinkJar CEO and former Gartner analyst, in one of his customer experience survey recalls, made the following statement:
“Only 1 out of 26 unhappy customers complain—the rest churn. A lesson here is that companies should not view the absence of feedback as a sign of satisfaction. The true enemy is indifference.”
- There’s a defined link between NPS Promoters and revenue growth.
- Seventy-five percent of retained customers are prepared to pay more to signify their brand loyalty.
- A five percent Promoter category increase across the customer base can zoom the bottom line by 25 to 95 percent.
- Various other projects and studies demonstrate that NPS Promoter expansion correlates strongly with drivers generating new sustainable revenue. Here are some extracted examples:
- A 10-point NPS spike (improvement in customer satisfaction) resulted in a 3.2% jump in upsell revenue.
- Promoters showed 4.2 times more enthusiasm to repeat purchases than any other NPS category. Data analysts calculated from this that a 70 NPS business, competing against a competitor scoring NPS 50, will likely outpace the latter by 25% on sales renewal.
- Companies with 75 NPS scores and above show a minimum of 13% higher customer lifetime value than those reflecting NPS’s of 74 or below.
2. Recommended Detractor and Passive Conversion Strategies
The clear recommendation here is to pay special heed to your feedback from all three categories. They hold the clues and insights that will lead you to a better strategic positioning.
There may be subtle differences, where Passives are not as passionately negative as Detractors, yet there’s no denying that all demographically segmented respondents in modern times want similar benefits.
Please consider the following marketing/sales initiatives, derived from qualitative NPS survey data, proving the two-question format is worth its weight in gold. It’s a straightforward dual-step process that should help you expand the Promoter category as much as possible:
Step one: Assess the energy you must devote to each of the NPS categories, putting them side by side when reviewing the survey results. For example:
- A tiny Passive versus massive Detractor emergence requires a substantially different approach to vice versa or when they’re approximately equal in size.
- In other words, converting these resistant respondents to Promoters is the overwhelming goal, so ratio differences are highly relevant.
Step two: Sell your customers how they want to buy, not necessarily how you prefer to sell. It means you must:
- Converse with them through their selected interactive social media.
- Deploy direct or digitally indirect customer contact via podcasts, videos, chatbots, mobiles, and call centers as gauged from respondent feedback.
- Heavily emphasize loyalty programs and reward repeat buying.
- Personalize communications far beyond popping up with rote greetings on birthdays and anniversaries.
- Go the extra mile to do things differently, but more meaningfully, than your competitors.
- Follow up with pulse surveys to ensure your moves have the impact you visualize.
- Initiate apologies, product recoveries, and impressive fixes that conclusively address the discontent. It’s especially crucial when any widespread feedback from the Detractor or Passive groups signifies severely defective touchpoints.
Final Thoughts: Promoters drive profits, but Passives and Detractors open the door
I’ve presented a compelling case for the proposition reflected in the subheading above, revealing the massive benefits one can expect from an ongoing NPS survey program. However, please appreciate that the inter-connection between the three respondent categories is complex and the remedial actions present several options and opportunities.
Sogolytics is a leading entity at the cutting edge of NPS implementation, from sample calculation to evaluating results, taking advantage of qualitative insights, and more. Our team’s expertise in NPS protocols, analytics, emerging strategies, and online coordination has assisted clients throughout the country make sense of the insights and cut out trial-and-error expenses.
Contact us today for a no-nonsense, frank discussion regarding your NPS needs and any other research ideas you have.
FAQs:
Q1. What are promoters, passives, and detractors in NPS?
A: In Net Promoter Score (NPS), customers are grouped based on their response to the question: “How likely are you to recommend us to a friend or colleague?”
- Promoters (score 9–10) are your most enthusiastic and loyal customers.
- Passives (score 7–8) are satisfied but unenthusiastic and may easily switch to competitors.
- Detractors (score 0–6) are unhappy customers who could damage your brand through negative word-of-mouth.
Q2. How can I convert passives into promoters?
A: Passives often fly under the radar, but with the right attention, they can become strong promoters. Analyze their feedback to identify small friction points in your product or service. Then, take specific actions like personalizing communication, offering loyalty incentives, or simplifying user experiences. Even minor improvements based on their input can move the needle from “meh” to “amazing.”
Q3. What are the best strategies for dealing with detractors?
A: Detractors aren’t lost causes – they’re your best source of honest, actionable feedback. Reach out quickly, acknowledge their concerns, and offer a meaningful resolution. Go beyond generic apologies – show them that you’re taking real steps to fix the issue. A follow-up after recovery can often leave a lasting impression and even convert a critic into a brand advocate.
Q4. How can I improve my Net Promoter Score?
A: Improving your NPS means focusing on every part of the customer experience. Gather qualitative feedback to uncover pain points, address detractor concerns proactively, and identify what turns passives into promoters. Use these insights to enhance products, streamline processes, and train teams on delivering value. Data-backed strategies combined with consistent follow-through make the difference.
Q5. What is the significance of promoters in business growth?
A: Promoters are your growth engine. They recommend your brand to others, spend more, churn less, and deliver powerful word-of-mouth marketing. According to research, companies with a high percentage of promoters grow faster and more sustainably. Investing in promoter-driven relationships leads to stronger brand loyalty and greater lifetime customer value.
