NPS® or Net Promoter Score® is a metric used to various organisations to measure Customer Loyalty. It has been proven to be an accurate predictor of future growth. This metric measures the willingness of a customer to recommend a product or service to others. NUMR, a customer experience management (CXM) company recommends that all organisations should continually track their NPS.
Therefore, Net Promoter Score calculates the likelihood of recommendation.
It is based on only 1 question. That is, on a scale of 0 to 10 (0 being the least likely and 10 the most),
“How likely are you to recommend (a product or service) to your friends and colleagues?”
Depending on the answers, the overall score can range from –100 to 100.
Furthermore, based on the score they give, all customers are divided into-
PROMOTERS in Net Promoter Score®
They are loyal admirers of your company. Also, they enthusiastically refer it to other people and drive recommendations. Since, they are ardent fans, they promote business growth.
These are partially satisfied customers. Therefore, they are neither admirers nor haters. Since, they are not at all loyal to your product or service, they do not refer it to others. Furthermore, they can easily defect to the competitor, at any time.
They are extremely unsatisfied customers. Additionally, they can damage your brand and impede growth through negative word of mouth. Since, they are angry customers, they have the highest chances of churning. Therefore, it is of paramount important to listen to them and resolve their issues quickly.
NET PROMOTER SCORE® CALCULATION
Net Promoter Score® is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
Ideally, the Net Promoter Score® can range from –100 (if all customers give a score of 6 or less) to 100 (if all customers give a score of 9 or 10).
The end goal of a Net Promoter Score® exercise is to transform Detractors and Passives into Promoters.
How can NUMR help?
NUMR helps companies convert DETRACTORS into PROMOTERS. By enabling Real-time NPS® feedback at all touch points, we make NPS® more than an exercise in Statistics. Instead, we make it infinitely actionable.
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