Are you part of a nonprofit organization, always on the lookout for ways to improve your services? Have you ever heard of the Net Promoter Score (NPS)? If you haven’t, you’re missing out on a valuable tool that can help your organization flourish and achieve its goals. NPS is a customer satisfaction metric that measures the willingness of clients to recommend your organization to others. It is a simple yet powerful tool that can provide useful insights into the loyalty of your donor base, helping you make better-informed decisions.
But what exactly is a good net promoter score for nonprofits? The answer is not as straightforward as you might think, as the score can differ depending on the type of organization, the services provided, and the audience being surveyed. However, a high NPS is generally considered to be above 50, indicating that a significant proportion of your donors are satisfied with your work and would happily recommend you to others. A low NPS, on the other hand, suggests that few of your clients are enthusiastic about your organization, and improvements should be made to increase your support.
If you’re not sure what your nonprofit’s NPS is, don’t worry – discovering your score is easy. All you need to do is send out a survey to your donors asking them how likely they are to recommend your organization to a friend or colleague on a scale of 0-10. Subtracting the percentage of detractors, who give a score of 0-6, from the percentage of promoters, who give a score of 9-10, will give you your NPS. Armed with this knowledge, you can take the necessary steps to improve your score and boost your donor base.
What is a net promoter score (NPS)?
If you’re not familiar with it, Net Promoter Score (NPS) is a widely used metric that helps businesses measure customer loyalty and satisfaction. It’s a simple, yet powerful way to gauge how likely it is that a customer will recommend your organization to their friends or colleagues. It’s measured on a scale of 0-10, with 0 being “not likely at all” and 10 being “extremely likely”.
The Net Promoter Score (NPS) is calculated by subtracting the percentage of detractors (people who give a score of 0-6) from the percentage of promoters (people who give a score of 9-10). Passives (people who give a score of 7-8) are not counted in the score but can provide valuable feedback.
The NPS is often used as a benchmark to measure customer satisfaction and loyalty, with a score of above 0 generally considered as a good score, 50 or above as an excellent score, and 70 or above as a world-class score.
How is NPS calculated?
Net Promoter Score (NPS) is a widely used metric that helps organizations measure customer loyalty and satisfaction. It is also used by non-profit organizations to measure their donor loyalty and satisfaction. To calculate the NPS score, non-profit organizations must follow a simple process.
- Step 1: Survey the donors by asking one question – “How likely are you to recommend our non-profit organization to your friends and family?”
- Step 2: Ask the donors to rate their answer on a scale of 0 – 10, with 10 being the most likely to recommend.
- Step 3: Based on their score, donors can be segmented into three categories:
- Promoters (score 9-10): They are donors who are extremely satisfied with the non-profit organization and will recommend it to others.
- Passives (score 7-8): They are donors who are satisfied with the non-profit organization, but are not likely to recommend it to others.
- Detractors (score 0-6): They are donors who are not satisfied with the non-profit organization and will not recommend it to others.
- Step 4: Calculate the NPS score by subtracting the percentage of detractors from the percentage of promoters.
For example, if 50% of donors are promoters and 20% are detractors, the net promoter score would be 30%. A positive NPS score indicates that the non-profit organization has more satisfied donors than unsatisfied donors. Conversely, a negative NPS score indicates that the non-profit organization has more unsatisfied donors than satisfied donors.
What is a good NPS for nonprofits?
Net Promoter Score, commonly known as NPS, is a metric that measures customer loyalty by asking one question: “How likely are you to recommend our organization to a friend or colleague?” The respondents rate their answer on a scale of 0 to 10, where 0 signifies not at all likely, and 10 indicates extremely likely. Nonprofits are using NPS to gauge their performance and donor satisfaction levels.
- According to NPS standards, a score of 50 or above is considered excellent, and a score of 70 or above is considered world-class.
- However, the NPS benchmark for nonprofits is lower than that of businesses due to differences in the industry. A good NPS for nonprofits is generally between 30 and 50.
- Nonprofit organizations should strive to achieve an NPS that is higher than the industry average.
Organizations must track their NPS consistently to identify patterns, generate insights, and make necessary changes. Nonprofits must analyze their NPS trends by breaking down the score by donor type, giving frequency, and donation amount. The breakdown will provide more precise insights into what is driving their score and how to improve it.
The following table shows the common NPS classifications and their corresponding scores:
| NPS Classifications | NPS Scores |
|---|---|
| Promoters | 9-10 |
| Passives | 7-8 |
| Detractors | 0-6 |
Nonprofits must focus on financial and non-financial aspects to improve their NPS. They must invest in excellent customer service, effective communication, and speedy problem resolution to maximize customer satisfaction. In addition, nonprofits must continuously evaluate the impact of their programs and how they deliver on their mission to boost their NPS score.
How does NPS differ for for-profit and nonprofit organizations?
While the Net Promoter Score is a useful tool for both for-profit and nonprofit organizations, there are some key differences in how it is used and interpreted.
- Goals: For-profit organizations typically use NPS as a way to measure customer loyalty and identify areas for improvement to increase revenue. Nonprofits, on the other hand, may use NPS to gauge donor satisfaction and retention, and to better understand how to improve their mission and impact.
- Scoring: The scoring system for both types of organizations is the same – a scale from 0 to 10 – but the benchmark scores can differ. While a score of 50 or above is considered a good NPS for most for-profit businesses, a nonprofit may set a different goal based on their specific objectives and industry.
- Metrics: For nonprofits, metrics beyond NPS are equally important to understand their impact. Donor retention and acquisition rates, average donation amount, and overall giving trends are all important indicators of success for nonprofits that should be considered in conjunction with NPS.
Overall, while the fundamentals of NPS are the same for both for-profit and nonprofit organizations, the goals and benchmarks will vary based on each organization’s unique mission and objectives.
Examples of good NPS scores for nonprofits
While the desired NPS score can vary depending on the nonprofit and their sector, there are generally accepted benchmarks for what a good score may look like. The following table provides some examples of average NPS scores for nonprofits in different industries:
| Nonprofit Industry | Average NPS Score |
|---|---|
| Healthcare | 42 |
| Education | 48 |
| Arts & Culture | 56 |
| Environment & Animals | 31 |
While these numbers are just averages and should not be taken as gospel, they do provide a useful framework for nonprofits to understand what a good NPS score may look like within their specific industry.
How Can Nonprofits Increase Their NPS?
Net Promoter Score (NPS) is a vital tool for nonprofit organizations, helping them to measure the loyalty of their donors and supporters. A higher NPS score indicates more loyal and satisfied donors, which translates into increased funding, higher engagement levels, and better word-of-mouth referrals. Here are some strategies nonprofits can implement to improve their NPS:
- Focus on Donor Experience: Donors’ satisfaction with their experience with your nonprofit is essential to improve your NPS. Nonprofits should focus on making every engagement point with their donors as positive and rewarding as possible. This includes timely and responsive communication, personalized engagement, and smooth and hassle-free donations.
- Ask for Feedback: Nonprofits should make it a habit to ask their donors for feedback via surveys, polls, or one-on-one conversations. This feedback helps nonprofits to understand and address the concerns and priorities of their donors, leading to improved loyalty and higher NPS scores.
- Re-engage Inactive Donors: Nonprofits should put in extra effort to re-engage their inactive donors as they are a significant source of potential funding and referral opportunities. Nonprofit organizations can use personalized engagement methods, such as targeted communication, special events, and exclusive offers to win back their trust and loyalty.
Nonprofits should strive to engage their donors throughout the entire donor journey, from the first point of contact to the post-donation follow-up. This engagement could be through social media engagement, volunteer opportunities, exclusive events, and other means. Here are some vital elements that can help a nonprofit organization improve its NPS:
- Responsive and personalized communication
- A well-defined donor journey and experience
- Prompt and efficient donation processing
- Transparency in financial reporting
- Efficient use of donor funds
Measuring and Tracking NPS Scores
Nonprofits should track their NPS scores to identify trends and make strategic decisions based on the feedback of their donors. The following table shows how nonprofit NPS scores relate to donor loyalty and referral:
| NPS Score | Net Promoter Traits | Likelihood to Refer | Likelihood to Repeat Donations |
|---|---|---|---|
| 9-10 | Promoters | Extremely High | Extremely High |
| 7-8 | Passives | Moderate | Moderate |
| 0-6 | Detractors | Low | Low |
Nonprofits should strive to improve their NPS scores to retain loyal donors and attract new ones. By focusing on donor experience, asking for feedback, and re-engaging inactive donors, nonprofits can improve their NPS scores and, in turn, improve their bottom line and fulfill their mission.
What are the benefits of a high NPS for nonprofits?
Net Promoter Score (NPS) is a valuable metric for measuring how likely customers are to recommend your nonprofit organization to others. And just like in the business world, a high NPS score has many benefits for nonprofits.
- Better donor retention: A high NPS score indicates that your nonprofit has a loyal base of donors who are willing to recommend your organization to others. This increases the chances of repeat donations and improves donor retention rates.
- Increased word-of-mouth marketing: A high NPS score means that your current donors are highly satisfied with your organization, making them more likely to spread the word about your mission and encourage others to get involved.
- Improved fundraising efforts: A high NPS score can lead to an increase in donations as more people become aware of your nonprofit’s cause and become interested in supporting it.
Additionally, a high NPS score can also help nonprofits identify areas for improvement and increase donor satisfaction. By analyzing the feedback received from the NPS survey, nonprofits can pinpoint areas where they need to improve, which can ultimately lead to a higher NPS score.
Take a look at the table below for a more detailed breakdown of the benefits of a high NPS score for nonprofits:
| Benefits of a high NPS score for nonprofits |
|---|
| Better donor retention |
| Increased word-of-mouth marketing |
| Improved fundraising efforts |
| Identify areas for improvement |
| Increase donor satisfaction |
In summary, a high NPS score is critical for nonprofits to build a strong and loyal donor base, increase fundraising efforts, and improve overall donor satisfaction. By measuring NPS regularly and making changes based on feedback, nonprofits can continue to improve and grow their supporter base.
How can nonprofits use NPS data to improve their services?
Net Promoter Score (NPS) data is an essential tool for nonprofits to evaluate their services and make improvements to meet the needs of their stakeholders. Here are some ways that nonprofits can utilize NPS data:
- Identify areas that need improvement: By analyzing the responses to NPS surveys, nonprofits can pinpoint what aspects of their services require attention. For example, low scores on the question “How satisfied are you with our communication?” may indicate a need for better communication channels.
- Track progress: NPS data can help nonprofits measure how well they are meeting their goals over time. Regularly surveying stakeholders can show improvements or declines in satisfaction, allowing nonprofits to adjust their strategies accordingly.
- Make evidence-based decisions: By using NPS data alongside other indicators, such as fundraising metrics or volunteer retention rates, nonprofits can make more informed decisions about where to allocate resources to ensure they make the most impact.
Without NPS data, it can be difficult for nonprofits to know how well they are serving their stakeholders. However, collecting and analyzing NPS data can be challenging. Below are some tips on how nonprofits can optimize their NPS program:
- Survey the right people: Nonprofits should survey a representative sample of their stakeholders. For example, if a nonprofit’s main goal is to improve services for beneficiaries, it is essential to survey that group, rather than just donors or volunteers.
- Make it easy to respond: Nonprofits should make it as easy as possible for stakeholders to provide feedback through NPS surveys. Online surveys are convenient and can be automated, but it’s also important to ensure that confidentiality and anonymity are maintained.
- Focus on actionable feedback: The NPS question alone doesn’t provide much insight into specific areas needing improvement. For example, respondents may indicate a low score but not explain why. Nonprofits should follow-up with additional questions or qualitative surveys to gather more specific feedback that they can act upon.
In conclusion, NPS data is a powerful tool that nonprofits can use to improve services, track progress, and make informed decisions. While collecting and analyzing NPS data can be challenging, nonprofits should focus on surveying the right people, making it easy to respond, and gathering actionable feedback.
| Net Promoter Score | Interpretation |
|---|---|
| 9-10 | Promoters: highly likely to recommend or provide a positive review of your organization |
| 7-8 | Passives: satisfied customers, unlikely to provide recommendations or positive reviews |
| 0-6 | Detractors: unhappy customers, likely to provide negative reviews |
It’s important to note that the average NPS score for nonprofits varies by industry. While any score above 0 is a positive indicator, a score of 50 or above is considered excellent for nonprofits, and a score of 70 or above is considered world-class.
How frequently should nonprofits measure NPS?
Measuring NPS is an ongoing process that requires dedication and regularity. Nonprofits should evaluate their Net Promoter Score regularly to recognize when there are areas they need to improve. But how frequently should nonprofits measure NPS?
- The frequency of NPS measurement depends on the size of your organization, how often you deal with donors, and how frequently you can collect feedback.
- A suggestion is to measure NPS at least once a year is advisable. This gives you enough time to evaluate the data you collected and track the trends over time.
- Nonprofits may also prefer measuring NPS a few times a year, especially if they have a significant number of new donors.
Here’s a table showing how frequently nonprofits can measure NPS depending on their organization’s size and scope of operation.
| Nonprofit Size | Frequency of NPS Measurement |
|---|---|
| Small | Once a year |
| Medium | Two or Three times a year |
| Large | Quarterly |
Remember, measuring NPS is not a one-time event, but a continuous process. By measuring NPS regularly, nonprofits can ensure that they are providing quality services and make necessary improvements to their organization’s objectives.
How do demographic factors affect NPS for nonprofits?
Demographic factors such as age, income, and education level can have a significant impact on the Net Promoter Score (NPS) for nonprofits. Let’s take a closer look at how these factors can affect NPS.
Impact of age on NPS
- Younger generations have higher expectations of nonprofits when it comes to engaging with them on social media and offering quick and efficient ways of donating.
- Older generations tend to have more established relationships with nonprofits and may be more likely to recommend them to others.
Impact of income on NPS
Higher income individuals are more likely to donate to nonprofits and may have higher expectations for the impact their donations will have. Therefore, nonprofits may need to work harder to meet these expectations and ensure high donor satisfaction to maintain a high NPS.
Impact of education level on NPS
Those with higher education levels tend to be more aware of social issues and may have higher expectations for nonprofits in terms of transparency and accountability. Nonprofits should be prepared to provide evidence of their impact, financial stability, and use of donations to meet these expectations and maintain a high NPS.
Impact of geographic location on NPS
Regional differences can also affect NPS. For example, nonprofits operating in urban areas may have more donors and a larger volunteer base, which can contribute to a higher NPS. Nonprofits in rural areas may struggle with limited resources and a smaller donor pool, which can affect their NPS.
| Demographic Factor | Impact on NPS |
|---|---|
| Age | Younger generations have higher expectations, while older generations may have stronger relationships with nonprofits |
| Income | Higher income individuals may have higher expectations and nonprofits may need to work harder to meet these expectations |
| Education level | Those with higher education levels may have higher expectations for transparency and accountability |
| Geographic location | Regional differences can affect NPS, with nonprofits in urban areas potentially having higher NPS |
In summary, demographic factors can have a significant impact on the NPS of nonprofits. Understanding how different groups may have different expectations and needs can help nonprofits tailor their strategies to improve donor satisfaction and increase their NPS.
What are common reasons for low NPS in nonprofits?
Nonprofits are organizations that work towards serving a cause rather than making a profit. They require the loyalty and support of their donors, volunteers, and beneficiaries to achieve their objectives. One of the essential metrics for nonprofits to measure their success is the Net Promoter Score (NPS). A high NPS indicates that the nonprofit is doing well, and its supporters are happy, while a low score indicates that it has some work to do. Here are some of the common reasons for low NPS in nonprofits:
- Lack of Communication: Nonprofits often fail to communicate effectively with their supporters; this lack of communication leads to misunderstandings and dissatisfaction. It is crucial to keep supporters informed about the cause, the organization’s progress, and how their contributions are being utilized. Failure to communicate can lead to feelings of mistrust, disconnect, and ultimately a low NPS.
- Poor Service Quality: Like any other organization, nonprofits need to provide quality service to their supporters. This includes prompt and courteous response to inquiries and addressing complaints effectively. A lack of professionalism and attention to customer service can drive supporters away, leading to a low NPS.
- Lack of Personal Touch: Supporters of nonprofits are willing to donate their time, money, and resources because they believe in the cause. A lack of personal touch, such as not acknowledging donations or not recognizing volunteers’ efforts, can demotivate supporters and drive them away. Nonprofits need to show gratitude and appreciation to their supporters to maintain a high NPS.
The following table shows the meaning of the different NPS categories:
| Net Promoter Score | Category | Description |
|---|---|---|
| +50 or above | Excellent | Customers are promoters and enthusiastic about the brand. |
| +30 to +49 | Good | Customers are satisfied and willing to recommend the brand. |
| 0 to +29 | Passive | Customers are indifferent to the brand and may switch to competitors. |
| -1 to -29 | Bad | Customers are unhappy and may damage the brand’s reputation. |
| -50 or below | Very Bad | Customers are critics and can harm the brand’s reputation. |
A low NPS can harm a nonprofit’s reputation and its ability to attract new supporters. Nonprofits need to take steps to address the reasons for the low score and improve their supporter engagement to achieve their objectives.
Thanks for Reading!
We hope this article has given you a better understanding of what a good Net Promoter Score is for nonprofits. Remember, it’s not just about the score itself, but about using the feedback to improve your organization. Whether you’re a small grassroots group or a large well-established nonprofit, there are always ways to increase engagement and satisfaction among your supporters. Thanks for taking the time to read this and don’t forget to come back for more helpful tips and insights!