PI's: Net Promoter Score
Satisfaction: Net Promoter Score
NPS GN: Net Promoter Score (NPS) GN
NPS HfOP: Net Promoter Score (NPS) HfOP/Sheltered
Rationale, Definition & Worked Example
Below you can find information regarding the rationale, definition and formula for this performance indicator. This includes a worked example to demonstrate how this indicator should be calculated.
Rationale
Question wording: How likely would you be to recommend [organisation name] to family or friends on a scale of 0 to 10, where 0 is not at all likely and 10 is extremely likely?
Definition
By asking one simple question, ‘How likely is it that you would recommend your landlord to a friend or family?’ it is possible to then track these groups and get a clear measure of an organisation’s performance through residents’ eyes. Residents respond on a 0-to-10 point rating scale and are categorised as follows:
Promoters (score 9-10) are loyal enthusiasts who will promote and support the landlord, increasing their reputation.
Passives (score 7-8) are satisfied but unenthusiastic tenants who can easily become detractors depending on circumstances.
Detractors (score 0-6) are unhappy customers who can damage your organisation and hold back development and growth through negative word-of-mouth.
Formula
In order to be of use to the association, the net promoter score needs to be put into context. In the commercial sector it is reported that companies with the most efficient growth operate with an NPS of 50 to 80. The average company often has an NPS of only 5 to 10 – in other words their Promoters barely outnumber their Detractors. Many companies have negative NPS scores which means that they are creating more Detractors than Promoters.