NET PROMOTER SCORE
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Net Promoter Score (NPS) is the number one method for measuring customer loyalty. Simple and effective feedback - with real-time insights!
Net Promoter Score is based on the ultimate question
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The power of NPS is hidden in the simplicity of just one simple question: What is the likelihood that you would recommend (our company) to a colleague or friend? It was developed by Fred Reichheld, Bain & Co. and Satmetrix in the 1990’s and they presented the method in the book, The Ultimate Question.
When you send out the NPS question to your customers they get to answer on a scale from 0-10, where 0 means not likely at all and 10 means very likely. Then, depending on the answers, you divide your customers into three different categories. NPS = percentage of Promoters − percentage of Detractors
. The number you get after this calculation is your companies Net Promoter Score.
Include Net Promoter Score in your customer feedback strategy
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NPS is by far the easiest and fastest way to get a quick and continuous overview of your customers loyalty. By measuring customer loyalty with Net Promoter Score you will get a score that you can easily benchmark with. The NPS is easy to understand and you don’t have to analyse the results of a large and complex survey. It simplifies the process for communicating results internally and puts the focus back on customer-related questions. NPS is easy to measure over time, giving you ongoing updates of your customer loyalty levels. Of course, one question won’t give you the whole picture – this method is too simple for that. We recommend using two or three questions in total, and, if you want deeper information, to also perform a traditional customer survey.
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