Understanding Net Promoter Score ® in 60 Seconds
A Bite-size Insight ™ module
Customers will voice their opinions about products, services and companies to coworkers, friends, and family members.
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The Net Promoter Score®, or NPS®, is a customer loyalty metric that measures how willing a customer is to recommend a product or service.
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The Net Promoter Score® was developed by Fred Reichheld, Satmetrix Systems, Inc., and Bain & Company’s loyalty practice.
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The Net Promoter Score® is calculated on a response to a single question: “How likely is it that you would recommend product X to a friend or coworker?”
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Those who respond with a score of 9 and 10 are likely to buy more and make positive referrals to other people.
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Those who respond with a score of 7 or 8 are likely satisfied customers, but lack the enthusiasm to promote the product.
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Those who respond with a score of 0 to 6 are often unhappy and will likely spread negative word-of-mouth about the product.
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To calculate NPS® for a product, group customers according to how they scored the product experience. For example:
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Net Promoter Score® is calculated by taking the percent of Promoters and subtracting the percent of Detractors.
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The possible NPS® can range from +100 (all Promoters) to -100 (all Detractors).
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A goal of every company is to improve the loyalty of its customers.
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Engaging customers about their experience of our product or company will reveal how to make improvements so we can achieve stronger loyalty with future customers.
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