The Net Promoter Score (NPS) is a valuable tool for assessing tenant satisfaction and gauging their likelihood to recommend a rental property or management services. Property managers typically ask tenants the following question:
“On a scale of 0 to 10, how likely are you to recommend our property management services or this rental property to others?”
Responses are categorized into Promoters (9-10), Passives (7-8), and Detractors (0-6). By calculating the NPS (Promoters minus Detractors), property managers gain insights into tenant sentiment, enabling them to identify areas for improvement, enhance tenant retention, and ultimately elevate the quality of their property management services.
Calculating Net Promoter Score (NPS)
The Net Promoter Score (NPS) is calculated by asking respondents a single question and categorizing their responses into three groups: Promoters, Passives, and Detractors.
The NPS question is typically framed as: “On a scale of 0 to 10, how likely are you to recommend our [product/service/organization] to a friend or colleague?”
Here’s how to calculate NPS Score:
Survey Question: Ask your customers or respondents to rate their likelihood to recommend your product or service on a scale of 0 to 10.
Categorize Responses:
Promoters (score 9-10): These are enthusiastic tenants who are likely to recommend your property management services.
Passives (score 7-8): These are satisfied but are not overly enthusiastic tenants.
Detractors (score 0-6): These are dissatisfied tenants who are unlikely to recommend your property management services.
Calculate Percentages: Calculate the percentage of respondents in each category based on the total number of survey responses.
Example of Net Promoter Score (NPS) Calculation
Calculating the Net Promoter Score (NPS) is crucial because it quantifies tenant loyalty and provides actionable insights to enhance property management services. The Net Promoter Score (NPS) is as follows:
NPS Calculation: Subtract the percentage of Detractors from the percentage of Promoters to obtain the Net Promoter Score.
Example:
Let’s say you surveyed 100 tenants, and their responses were categorized as follows:
- Promoters (score 9-10): 60 tenants (60%)
- Passives (score 7-8): 20 tenants (20%)
- Detractors (score 0-6): 20 tenants (20%)
Now, calculate the NPS:
NPS = Percentage of Promoters (60%) – Percentage of Detractors (20%)
NPS = 60% – 20%
NPS = 40.
In this example, the Net Promoter Score (NPS) is 40. This score can range from -100 (if all respondents are Detractors) to +100 (if all respondents are Promoters). A higher Net Promoter Score (NPS) generally indicates higher tenant satisfaction and a greater likelihood of tenants recommending your property management services.