Net Promoter Score (NPS) is everywhere.
This KPI is the foundation of most customer experience (CX) measurement programs. In fact, you’d be hard-pressed to find a CX survey these days that doesn’t include NPS as the very first question.
Following suit, eNPS is now becoming a standard for measuring the employee experience (EX).
Indeed, strong cultures are often built from top performing employees recommending the organization to other top performers.
If eNPS is not a KPI within your company yet, it should be.
Here are 3 basic things you should know about eNPS before you start measuring:
1. How to calculate eNPS
eNPS can range from -100 to 100.
eNPS asks the question “would you recommend [the organization] to a friend or colleague?” on a scale of 0-10.
9-10s are considered “Promoters” of your organization, 0-6 are considered “Detractors” of your organization, and 7-8s are “Passives.”
eNPS is calculated by subtracting the Detractors from the Promoters.
2. Tools your organization can use to get employee feedback on eNPS
To truly get an accurate eNPS, your organization should use a third party partner to administer the survey to ensure anonymity.
These partners can field the eNPS survey at a cadence that ranges from weekly to annually. We recommend a quarterly eNPS pulse. This allows the organization enough time to make changes and see if those changes made an impact on eNPS in one quarter.
3. How eNPS relates to the health of your organization & culture
Companies with Promoters who are recommending the company to talented friends or colleagues tend to be top performers who stay longer & build a stronger culture.
Companies who measure eNPS on a regular basis can spot variability among work groups or departments. This allows them to pinpoint & narrowly focus on interventions and improvements within potential problem areas of the company.
I hope this helped you understand eNPS a bit better.
If you have any other questions about eNPS, or are looking to incorporate it into your employee experience (EX) program, send us a note! We’d love to help you get going.
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Make eNPS a KPI within your company.
About the Author
Sean McDade, PhD is the author of Listen or Die: 40 Lessons That Turn Customer Feedback Into Gold. He founded PeopleMetrics in 2001 and is the architect of the company’s customer experience management (CEM) software platform. As CEO, he guides the company’s vision and strategy. Sean has over 20 years of experience helping companies measure and improve the customer experience. Earlier in his career, he spent five years at the Gallup Organization, where he was the practice leader of their consulting division. His company offers CEM software with advanced machine learning solutions and hands-on analytical support to help companies make sense of their CX data. Sean holds a Ph.D. in Business Administration with a specialization in marketing science from Temple University in Philadelphia. He has published eight articles in peer-reviewed scholarly journals and has taught over 25 marketing classes. Sean was named a 40 under 40 award recipient of the Philadelphia region. He is an active Angel Investor, including investments in Tender Greens, CloudMine and Sidecar.
Topic: Employee Experience