NET PROMOTER SCORE
Net Promoter Score (NPS) provides a simple metric that can be used to cross compare (benchmark) and track an organisation's customer loyalty over time.
NPS Philosophy
The philosophy behind NPS is :"The best way of establishing a person's satisfaction with a product/service, and their likelihood to recommend/re-purchase is to ask them just one question, referred to as the "Ultimate Question".
That question is : "Based on your experience of this organisation how likely are you to recommend it to a friend?"
The question is answered using a 10-point scale, the final score being expressed as a percentage of those who answered as follows.
- 1 point added for those respondents who scored either a "10" or "9". These are classified as promoters.
- No points are added or deducted for those who scored either an "8" or "7". These are classified as neutrals and as such don't count.
- 1 point deducted for all those who score from "6" through "0". These are classified as detractors.
Why NPS?
A concept developed originally by Fred Reichheld in association with Satmetrix, Bain & Co., NPS can show how the organisation compares with both its peers and with 'headline' organisations. Organisations who use NPS can have at their disposal a performance metric to be added to their other corporate performance metrics (often referred to as Key Performance Indicators or KPIs). These can include earnings per share/RevPAR/annual growth etc.
In summary NPS is a number, which illustrates the strength of the organisations' hold on its customers (or employees) and shows the trend in that score over time.
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WHAT SHOULD YOU EXPECT (Click to expand)
NET PROMOTER SCORE (Click to expand)
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