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What Is Your NPS?

What is your NPS?

Quality, Consequences and the Construction Industrial Complex (part 322).

Stop doing long form client surveys, just ask one question and determine your Net Promoter Score (NPS).

NPS is a client loyalty and satisfaction measurement derived by asking clients how likely they are to recommend your firm to others on a scale of 0-10. Simple!

NPS is fast becoming the “gold standard” of client experience metrics. For professional services businesses I would argue it Is an important, lagging KPI that signals the strength and growth potential of your business.

Who in the AEC sector uses NPS? I have not heard of any firm using it yet. Most firms that do client surveys make the mistake of sending out a long list of questions that take the recipient a long time and multiple clicks to complete. When I have received them I find them irritating, time consuming and I end up with ill feelings towards the firm who tricked me into responding to their “short” but actually long survey.

How you leave a project is how you are remembered

How can we find out how we have done in one question? The answer is to ask every client on project completion this one question:

How likely is it that you would recommend us to others or engage our firm on the next project?

Clients give a rating between 0 (not at all likely) and 10 (extremely likely) and, depending on their response, clients fall into one of three categories to establish an NPS score:

  1. Promoters respond with a score of 9 or 10 and are typically loyal, enthusiastic and repeat clients.
  2. Passives respond with a score of 7 or 8. They are satisfied with your firms service but not happy enough to be considered promoters.
  3. Detractors respond with a score of 0 to 6. These are unhappy clients who are unlikely to use your firm again, and may even discourage others from engaging with your firm.

How to calculate NPS

It’s easy to calculate NPS, just subtract the percentage of Detractors from the percentage of Promoters.

For example, if 10% of respondents are Detractors, 20% are Passives and 70% are Promoters, your NPS score would be 70-10 = 60.

What’s Considered a Good Net Promoter Score?

Net Promoter Score scores can range from -100% (all detractors and no promoters) to 100% (all promoters and no detractors). The closer to 100, the better.

Different business sectors bring differing views to their NPS. However, good rules of thumb are:

  • 70 or more: outstanding
  • 50 to 69: strong
  • 49 or less: needs improvement
  • Below 0: red flag!

If I where evaluating an AEC business for purchase I would want to know their NPS. How does your business score?

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