Why is Net Promoter Score® not a Percentage?

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Divya Kandwal
September 27, 2019
mins read

Net Promoter Score® is a powerful Customer Experience Management tool. In fact, it goes beyond customer satisfaction and measures Customer Loyalty. Therefore, it is a strong indicator of future growth of a company. NUMR, a customer experience management (CXM) company asserts that NPS® is the simplest yet most effective metric for CX Management.

Namely, “On a scale of 0 to 10, how likely are you to recommend us to others?”

Net Promoter Score® scale Numr Research Text Analytics customer feedback

Now, customers who give a score of 9 or 10 are Promoters. Unsurprisingly, these are ardent fans or admirers of your brand. Additionally, they help in Growth by positive word-of-mouth. Therefore, the goal of an NPS® initiative is to converts customers into Promoters.

Additionally, customers who provide a score of 7 or 8 are Passives. Basically, they neither admire nor hate your brand. Since, they feel no loyalty to your brand, they are easily susceptible to your competition.

Lastly, customers who give a score of 6 or less are Detractors. Ultimately, these are the customers that a company should prioritise. Since, they are unsatisfied and/or angry, they have a high chance of Churning.

(Read more about how Numr companies decrease Churn/Customer Attrition here.)

In short, Net Promoter Score® is calculated by subtracting the percentage of Detractors from Promoters.

Net Promoter Score® measure Numr

Net Promoter Score® is NOT a Percentage

As shown above, Net Promoter Score® is not a percentage. Moreover, it is a derived figure.

For instance, an NPS® of 30 does not mean that 30% of your customers will recommend your brand. Instead, it is the difference between your Promoters and Detractors.

Nowadays, most companies use Net Promoter Score® as the main tool for Customer Management. Its beauty lies in its simplicity. And yet, despite being uncomplicated, it is increasingly effective. According to Forbes article, poor customer service costs businesses more than $75 billion a year. Undoubtedly, customer service should be a priority of all businesses. And, Net Promoter Score® makes it manageable and effortless.

*Net promoter Score® and NPS® are registered trademarks of Bain & Company, Satmetrix and Fred Reichheld

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