Net Promoter Score (📣 NPS) measures customer loyalty and the likelihood of recommending a company or product. It gauges customer advocacy.
Notes
Question
On a scale of 0 to 10, how likely are you to recommend [company/product] to a friend or colleague
Story
NPS is a widely used metric that assesses customer loyalty by asking how likely they are to recommend a company or product to others. Customers are categorized as Promoters (enthusiastic advocates), Passives (satisfied but unenthusiastic), or Detractors (dissatisfied and potentially harmful). 📣 NPS helps businesses understand customer sentiment and predict future growth.
TakeAways
- 📌 NPS measures customer loyalty and likelihood to recommend a company or product.
- Categorizes customers as Promoters, Passives, or Detractors.
- Predicts future growth and gauges advocacy.
- 💡 NPS is typically measured using a 0-10 scale question about recommendation likelihood.
- 🔍 NPS is expressed as a score ranging from -100 to +100.
Process
- 📝 Survey Question: Ask customers: “On a scale of 0 to 10, how likely are you to recommend [company/product] to a friend or colleague?”
- 📊 Categorize Responses:
- 0-6: Detractors
- 7-8: Passives
- 9-10: Promoters
- 📈 Calculate NPS:
(% of Promoters - % of Detractors) - 🛠️ Analyze and Act: Analyze the results and take action to improve customer experience and increase Promoters.
Thoughts
- 📣 Customer Advocacy: High NPS indicates strong customer advocacy.
- ❤️ Loyalty Indicator: NPS reflects customer loyalty and long-term relationships.
- 📈 Business Growth: Promoters contribute to organic growth and positive word-of-mouth.
- 🤔 Actionable Insights: NPS provides actionable insights for improving customer experience.