Net Promoter Score (NPS) is the number one method for measuring customer loyalty. Simple and effective feedback – with real-time insights!Try Netigate
The power of NPS is hidden in the simplicity of just one simple question; What is the likelihood of you recommending (company x) to a friend or colleague? This seminal method was developed by Fred Reicheld, Bain & Co. and Satmetrix in the 1990s and can be fully reviewed in their book: “The Ultimate Question”. The NPS question allows participants to answer on a scale from 0 – 10, where 0 = Not likely at all and 10 = Very likely.
The respondents are then divided into three groups based on their scores: Detractors, who give a score between 0 and 6, Passives who give 7 or 8 and Promoters who give 9 or 10. The NPS (net promoter score) is then calculated by subtracting the % of Detractors from the % of Promoters. A positive NPS (over 0) can be viewed as a good thing while a score over 50 would be excellent.
"Working with insight-based measures to improve our customer ratings is both important and exciting. By setting up improvement measures based on these metrics, we can make relevant changes as we actually have knowledge of those who matter, our subscribers."
NPS is by far the easiest way to get a quick and continuous overview of your customers’ loyalty and satisfaction. The Net Promoter Score method allows you to set a constant benchmark and target for your customer feedback. The NPS is easy to understand and simplifies the process of communicating results internally.
Through continuous updates you can track results in real-time and keep your finger on the pulse of your customers’ attitudes without having to analyse the results of a large survey. Of course, one question can’t give you a multi-level picture. We recommend using two or three questions in total, and, if you want deeper information, to also perform a traditional customer survey.