The Net Promoter Score explained in a few words
NPS or Net Promoter Score is a metric created in 2003, frequently appearing in contexts of measuring customer loyalty, satisfaction and engagement. The results may be interpreted and used to improve necessary areas within a business. As well as to keep customers happy enough to stay.
Imagine that you are taking part in a post purchase survey. NPS divides customers into three categories. If you have the label a “detractor” it means that you are not a happy customer at all. In fact, you are so unhappy that you wouldn´t dream of returning for another purchase, nor recommending this place to any of your friends. Quite the opposite, actually!
If you are labelled “passive” in an NPS survey, it means that you are neither happy nor unhappy. You may have made a few purchases the outcomes of which were OK, but no more than that. You may return for more but you don’t have any high expectations. And if a competitor would offer something better you wouldn´t hesitate to go for it.
The optimal result for the company in question is if they can label you and all other customers as a “promoter”. This means that you are happy with their services and products, you wouldn’t dream of leaving them for any other place, and you take every opportunity to mention them and recommend them to others.
The most important question to analyse the Net Promoter Score
“How likely is it that you would recommend this company to your friends and acquaintances?”
0 – Unlikel10 – Highly Likely
Yes, this is the ultimate question, and the question on which all surveys using the NPS principle are based. Even if you may add other questions in a questionnaire to elicit motivations or examples. Coupled with to extend the usefulness of the results.
Some who are in favour of NPS as a method claim that it can be just as effectively applied to surveys measuring employee loyalty, then being called eNPS (Employee Net Promoter Score). Netigate offers an online platform with several solutions for NPS surveys. Why not use the same structure for measuring both customer and employee loyalty within your company?
By implementing standard metrics such as Net Promoter Score or Customer Satisfaction Index it will be easy to view, compare and understand the results and identify possible areas for improvement. Netigate’s analysis also enables excellent visualization of the results through real-time dashboards. You can easily distribute to the right people within the organization.
