NPS Explained

In a business to business context, customer experience is a key differentiator. In the built environment, companies are increasingly considering how and when to engage clients for feedback to improve their business and inform strategy. We are increasingly asked about the value of the Net Promoter Score (NPS), which is gathering momentum in the sector as a tool to help build strong relationships and fuel growth. We have written before about NPS but here we focus on why it matters.

What is NPS?

First a quick reminder about what it is. NPS is a customer loyalty and satisfaction measurement derived from asking a single question: On a scale from 0 to 10, how likely are you to recommend our company/product/service?

Based on their answers, customers are segmented into three categories:

  • Promoters (9–10): Loyal enthusiasts who will keep buying and refer others, fuelling growth
  • Passives (7–8): Satisfied but unenthusiastic customers vulnerable to competitive offerings
  • Detractors (0–6): Unhappy customers who can damage your brand and slow growth through negative word-of-mouth

The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters: NPS = % Promoters – % Detractors. The result is a score ranging from -100 to +100.

Why does it matter?

While often associated with consumer-facing brands, it is arguably even more powerful in business to business relationships, especially in an industry where individuals often work for the duration of their career and where networks and relationships really matter – like the built environment.

Here are the 5 key areas where NPS can add significant value:

1.) High customer lifetime value (CLV)

Each customer relationship has significance, especially over time. Losing a single client could mean a significant loss in revenue, while a promoter can lead to long-term contracts, upsells, and referrals.

2.) Sales cycles and relationship depth

Sales cycles require building deep trust. NPS gives insight into how strong your relationship is and where you might be losing credibility or momentum.

3.) Early warning system

A drop in NPS can serve as an early indicator of client dissatisfaction, allowing you to take action and address issues before they escalate.

4.) Customer relationship and strategic account management

NPS provides a lens into how clients perceive your brand, value proposition and delivery. It helps prioritise accounts. Low scores mean there are deeper issues that need to be resolved. A score of 9-10 signals a trust and loyalty that means that they are willing to stake their reputation to recommend you. Scores over time show trends, giving you the opportunity to sustain or enhance relationships as needed.

5.) Business development

Happy clients are brand advocates and more likely to recommend or introduce your services to their peers, provide testimonials, and participate in case studies. It is a leading indicator for upsell potential, renewal likelihood, and expansion opportunities. Your average NPS score gives prospects confidence too. High NPS responses also often come with valuable qualitative feedback, which can guide future offer decisions and service improvements.

Final thoughts

NPS can be a highly valuable strategic asset. As with any metric however, the key is to act on it. Detractors need attention to understand and resolve their issues, while promoters can be engaged to encourage deeper partnerships.

NPS scores are helpful, but add much more value if gathered at regular intervals and analysed over time to highlight trends. They can be used as a key performance indicator for customer success and revenue growth, and segmented by project size, industry, service or geography to understand where your strengths and weaknesses lie across your business.

In an industry where relationships and reputation are everything, NPS can be a highly effective tool to retain key clients, grow through referrals, and sustain competitive advantage.

If you want to know how NPS can help your business grow, get in touch today.

FAQ:

What is a Net Promoter Score (NPS)?

  • A simple loyalty metric asking clients how likely they are to recommend you (0–10 scale), categorising them as Promoters, Passives, or Detractors.

Why is NPS important for B2B companies? 

  • It reveals relationship health, benchmarks loyalty, and spots risks before contracts are lost.

How is NPS calculated?

  • NPS = % Promoters – % Detractors. The result is a score ranging from -100 to +100.

What are the benefits of NPS in the built environment sector? 

  • It uncovers service gaps, builds trust, and improves competitiveness in tenders.

How often should NPS be measured? 

  • Once or twice yearly, plus after key project milestones.

How can NPS support business growth and improve service delivery?

  • By driving referrals, improving retention, guiding service enhancements, and creating long-term advocates.