Earlier this week we talked about which factors people use to gauge their success as a small business owner. Today we’re going to look at a great to measure the success of the business itself. It’s called the Net Promoter Score (NPS).

If you’ve not heard of it before, the NPS of a business is measured with one simple question posed to its customers: “how likely would you be to recommend this business to a friend or colleague?” The respondents’ answers fall on a scale of 1 to 10, and are then grouped into 3 categories – Promoters (9-10), Passives (7-8), and Detractors (6 or below). To make it simple, you disregard the Passives, and then subtract the percentage of Detractors from the percentage of Promoters, and that number is your NPS. Sometimes expressed as a percentage, sometimes as a score.


There are many ways to gauge the vitality of your business. One popular means of measurement is the Net Promoter Score (NPS). This metric determines how likely your current customers are to recommend your business to someone else. Why is this so important? Most basically, it tells gives you an idea of how happy your customers are with the products or services you’re currently providing. On a deeper level, it gives you insight into your business’ potential for growth.

As shown in the infographic below from the referral marketing gurus at Ambassador, 65% of new business comes from referrals. Yowza. So it follows that if your NPS is low, your potential for growth in the near future is not terribly bright.



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