(2022 NPS Benchmark)
WRITTEN BY DR. DIANA RANGAVES, PHARMD
We all know the importance of having great Google reviews for a company to gain the trust and loyalty of customers to get business. Top ranking Google reviews help you to generate more sales and more business. Another way is knowing the Net Promoter Score (NPS) of your customers and business.
Being an HVAC business owner, it is important to know that you can leverage your customers’ feedback and Google reviews. It helps you identify your business’s weak and strong points resulting in better sales and revenue. NPS is a great way of gathering and evaluating your customers’ feedback. Moreover, NPS is a game-changer for HVAC businesses as it involves making customers trust your company.
In this blog post, we have discussed the definition of NPS and categories of customers like promoters, detractors, passives, and trusted.
Net Promoter Score (NPS) is one of the most effective customer loyalty metrics in a business. NPS measures customer reviews and willingness to recommend a company’s products or services to others.
An NPS score is a rating system that measures how well a product meets the needs of consumers. This score is calculated based on your product/service quality, pre and after-sales services, and overall customer experiences.
As an HVAC business, NPS helps you win customer focus and improve your customer service and customer loyalty with the feedback you’ve received.
What is a NET PROMOTER SCORE
A Net Promoter Score (NPS) is a measurement metric used to measure your customer loyalty. It’s based on the question, “How likely is it that you would recommend our company to a friend or colleague?”
NPS scores range from -100 (everyone is a detractor) to +100 (everyone is a promoter). If your product gets higher in the score, it means your customers are more loyal to you. NPS is one of the best metrics for understanding how satisfied your customers are and how much they are likely to refer your business to others.
Harvard Business Review asserts “NPS is the one number you need to grow.”
How do you calculate a Net Promoter Score (NPS)?
The NPS score is calculated by asking customers, “How likely are you to recommend our company to a friend or colleague?” Customers respond on a scale from 0 to 10, with ten being the most likely to recommend.
For the Net Promoter Score calculation, subtract the percentage of customers who gave a score of 6 or less from those who gave a 9 or 10.
Therefore, if 50% of respondents said they would be “very likely” to recommend your company and 30% said they would be “somewhat likely,” your Net Promoter Score would be 20 (50% – 30% = 20).
What is a good NPS score?
What is a good Net Promoter Score? It is quite tricky to answer depending on your product and target audience. Nonetheless, a good starting point is to aim for a 50 or higher. Anything below this threshold may indicate that you need to work on improving customer satisfaction.
Remember that NPS scores can vary from industry to industry, so it’s important to evaluate your results against those of your competitors. What can be a good score for other industries may not be the best for the HVAC business and vice-versa.
With that said, always strive to do better and continue pushing the envelope with the end – Thanks for sharing your valuable feedback!
According to Harvard Business Review,
“The only path to profitable growth may lie in a company’s ability to get its loyal customers to become, in effect, its marketing department.”
What is a bad NPS score?
Anything below a -50 score is considered a bad Net Promoter Score. It suggests that there is a significant dissatisfaction among customers. If your product gets a lower score, it should motivate you to achieve a high score, don’t be discouraged if your product falls on the lower end of the spectrum.
It is important to understand why your product has a low NPS and work to improve it. By putting in some effort and dedication, you can turn things around and start seeing better results.
Tools for measuring Net Promoter Score
Measuring customer loyalty is essential to understanding your business’s strengths and weaknesses. One of the most popular ways to measure customer loyalty is through the Net Promoter Score (NPS) or similar online tools.
These tools ask customers a simple question—“On a scale of 0 to 10, how likely are you to recommend a product/ service to a friend or colleague?”—this is the measurement gauge of your customers and viewers how they recommend your product to others.
Those who score 9-10 are considered promoters, 7-8 are passive, while those who score a six or below are considered detractors. Your NPS is a particularly important indicator of your loyal customer for their satisfaction and trust while they decide the future growth of your business.
As an HVAC business, you should focus on acquiring more “promoters” as they are really happy with your services and more likely to recommend your business to their group and get you more inbound leads.
With a NPS system in place, you can scale your HVAC business while knowing the real picture of what your customers think about your company.
The definition of NPS:
Grigore, Feb 9, 2022: NPS, CSAT, and CES – Customer Satisfaction Metrics to Track in 2022, https://www.retently.com/blog/customer-satisfaction-metrics/
Harvard Business Review on NPS:
Fredericks F. Reichheld, December 2003: The One Number You Need to Grow, https://hbr.org/2003/12/the-one-number-you-need-to-grow