MagicRating uses the “NPS Score” to measure your customer happiness.
What is the Net Promoter Score?
The NPS is a way to quickly measure how satisfied your customers are with your business.
Most customers are too busy or not willing to answer lengthy forms. But what if there was an easy way to get feedback from your customers, that was simple for them too?
The basis of the Net Promoter Score is that one simple question can tell you a lot about how your customers perceive your business. The question is: “How likely is it that you would recommend this company to a friend or colleague?”
Customers answer on a scale from 0 – 10, with 0 meaning Not At All Likely and 10 meaning Extremely Likely.
Those who answer 9 or 10 are “Promoters”
Those who answer 7 – 8 are “Passive”
Those who answer 0 – 6 are “Detractors”
The percentage of detractors is subtracted from the percentage of Promoters to get the Net Promoter Score.
Monitoring this Net Promotor Score (NPS) gives you a quick indicator of the health of your business in terms of customer satisfaction.
How To Read Your NPS Score
Companies with a better ratio of Promoters to Detractors tend to grow more rapidly than their competitors.
Companies with the most efficient growth engines operate with an NPS of 50 to 80. The average firm sputters along at an NPS of only 5 to 10 – in other words, their Promoters barely outnumber their Detractors.
Many firms – and some entire industries – have negative Net Promoter Scores, which means that they are creating more Detractors than Promoters day in and day out. These low scores explain why so many companies can’t deliver profitable, sustainable growth – no matter how aggressively they spend to acquire new business.
Source: http://www.netpromoter.com/why-net-promoter/compare/ Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.
Visual NPS Score Calculator A great way to understand NPS is by visualizing how the score is calculated. Please visit: http://www.npscalculator.com/en Note: npscalculator.com is not associated with MagicRating. We can not guarantee for the content on third party site links.
Why and how does MagicRating.com translate the NPS score into a 5 Star rating?
MagicRating translates the NPS score into a 1-5 star rating as found on Google and Yelp etc. This is beneficial for showing testimonials and aggregated scores on your website using the Testimonials Widget. Google and other search engines will be able to index those testimonials since MagicRating indexes them in the Schema Review Markup which is based on a 1-5 star system.
NPS Score to 1-5 Star conversion:
NPS Score 10 or 9 = 5 Stars
NPS Score 8 or 7 = 4 Stars
NPS Score 6 or 5 = 3 Stars
NPS Score 4 or 3 = 2 Stars
NPS Score 2 = 1 Stars
NPS Score 1 or 0 = 0 Stars