What is Net Promoter Score (NPS)?

Net Promoter Score (NPS) is a widely adopted customer loyalty metric used to measure customer satisfaction and gauge their willingness to recommend a company’s products or services to others. In the context of the call centre and customer services industries in Australia, NPS plays a crucial role in assessing the quality of customer interactions and identifying opportunities for improvement.


How Does NPS (Net Promoter Score) Work?

NPS is typically measured through a single-question survey sent to customers after an interaction with a call centre or customer service representative. The question asked is usually along the lines of: “On a scale of 0 to 10, how likely are you to recommend our company/service to a friend or colleague?” Based on their responses, customers are categorized into three groups:

  1. Promoters (Score 9-10): These are highly satisfied customers who are likely to recommend the company. They are considered loyal and enthusiastic.
  2. Passives (Score 7-8): These customers are satisfied but not enthusiastic. They are unlikely to actively promote the company but are also less likely to criticize it.
  3. Detractors (Score 0-6): Detractors are dissatisfied customers who may have had a negative experience. They are unlikely to recommend the company and may even share their negative experiences.

To calculate the NPS, the percentage of detractors is subtracted from the percentage of promoters. The resulting score can range from -100 (if all respondents are detractors) to +100 (if all respondents are promoters), with a higher score indicating a more favorable perception of the company.


How Is NPS Used in Call Centre and Customer Services Industries in Australia?

  1. Performance Evaluation: NPS serves as a key performance indicator (KPI) for assessing the effectiveness of customer service interactions. Call centres in Australia use NPS to evaluate how well they meet customer needs and expectations.
  2. Continuous Improvement: Feedback from NPS surveys helps call centres identify specific areas for improvement. By analyzing comments and suggestions from customers, organizations can make targeted enhancements to their service delivery.
  3. Agent Training and Coaching: NPS data can be used to identify agents who consistently receive positive or negative feedback. Call centres can then provide targeted training and coaching to improve agent performance.
  4. Customer Retention: Promoters, with their high NPS scores, are more likely to be loyal customers. Call centres can use NPS data to identify loyal customers and take steps to retain them.
  5. Benchmarking: NPS allows call centres to benchmark their performance against industry averages and competitors, providing insights into their relative position in the market.
  6. Root Cause Analysis: When NPS scores decline, call centres can perform root cause analysis to identify the underlying issues and take corrective actions promptly.

In the Australian call centre and customer services industries, NPS serves as a valuable tool for measuring customer satisfaction, fostering loyalty, and driving continuous improvement in service quality. By understanding customer sentiment and acting on feedback, organizations can enhance their reputation and customer relationships.



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