The Net Promoter Score® (NPS®) is a management tool to help drive business growth by improving customer advocacy.
The commitment to implement a NPS® program is a commitment to focus on your customers.
NPS® is a metric used globally to measure customer advocacy (loyalty) levels. NPS® establishes the likelihood of a customer to recommend your product, service, brand or company to another person on a scale of 0-10.
The result of the NPS® is expressed as a single number, which makes it useful for benchmarking against other companies and for measuring performance over time.
How does Net Promoter Score® (NPS®) work?
NPS® is based on a single question: “How likely is it that you will recommend [company, brand, product or service] to a friend/colleague?”. The response options range from 0 (not at all likely) to 10 (extremely likely). The responses are then grouped into the following three categories:
- Promoters: 9-10 scores
- Passives: 7-8 scores
- Detractors: 0 to 6 scores
Subtracting the percentage of respondents who scored as detractors from the percentage of promoters provides you with your Net Promoter Score®. NPS® can range anywhere between +100 and -100 with top of the range companies scoring between +50 and +80.
By including the strategic NPS® follow-up question(s) in your surveys you can identify the drivers/root causes and understand what you’re doing well and what you need to improve.
NPS® is also widely used for other stakeholder audiences (eg. members of associations, industry analysts/experts and employees). See more on employee Net Promoter Score® (NPS®)/eNPS®.
Net Promoter Score® and NPS® are registered trademarks of Satmetrix Systems Inc., Bain & Company and Fred Reichheld.
7 Reasons why Net Promoter Score® (NPS®) is Widely Used/Popular
- NPS® is currently the only “universal” measure of advocacy that is measured in the same manner irrespective of who collects and analyses the data (versus all other proprietary and specific measures that are used by many research companies and consultants).
- It’s relatively simple and quick.
- NPS® highlights who your key promoters and most-at-risk customers are.
- NPS® gives you an opportunity to contact your most-at-risk customers (who are likely to leave you and/or damage your reputation in the market) and resolve the situation quickly.
- With NPS®, you can benchmark your business and compare it with other companies (local and overseas) who also use this measure.
- It’s an indicator for future business growth as you’re measuring your customer advocacy level, which determines your potential for repeat business and positive word-of-mouth. A high NPS® correlates strongly with future growth.
- NPS® saves you money in the long run. Keeping your existing customers loyal is more cost effective than constantly trying to acquire new customers. This is due to the combination of the cost of replacing the lost customers with new ones and their lifetime value.
Why The Market Intelligence Co. is your Net Promoter Score® (NPS®) Program/Survey Provider?
- We conduct:
- We have a solid track record and credentials. We have conducted hundreds of NPS® projects.
- We provide industry benchmarking.
- We offer wide range of NPS® programs for highly specialised to extremely large customer bases.
- We use multiple data collection methods and formats that are appropriate to the customer population, calibre of customer contacts and industry sector.
- All NPS® projects/programs are led by accredited (Satmetrix certified) senior managers.
- Our NPS® surveys define, measure and evaluate your:
- customer’s journey with your company/organisation
- touchpoints across the customer journey
- customer’s experience with your company/brand (or products/services)
- company’s NPS®; along with the distribution of ‘Detractors’, ‘Passives’ and ‘Promoters’
- ‘Promoters’ – why are they Promoters?
- ‘Detractors’ – why are they Detractors?
- ‘Passives’ – what will it take to move them to Promoters?
- company’s performance on the key service and loyalty drivers
- customer’s drivers which will have the greatest impact on your NPS® to create more ‘Promoters’ and reduce the number of ‘Detractors’
- company compared to others in similar industries or against your competitors.
- e-reporting tools and dashboards, providing results from a high level down to a granular level, with as little or as much detail as you want.
- Real time insights when you need it.
In summary, we provide the total Net Promoter Score® (NPS®) program/service.
By using The Market Intelligence Co. you can avoid the usual pitfalls that can be associated with such programs, eg. gaming, sample and respondent bias, sample/respondent fatigue, methodological inconsistencies, response bias and low or unrepresentative participation/response rates.