Net Promoter Score (NPS)

    What Is the Net Promoter Score

    Net Promoter Score (NPS) is a metric used to gauge customer satisfaction and loyalty. It is based on the question, "How likely are you to recommend our company/product/service to a friend or colleague?" Customers respond on a scale of 0-10, with 0 being the least likely and 10 being the most likely.

    It is based on the belief that every company's customers can be divided into three groups:

    • Promoters: score between 9 - 10

    • Passives: score between 7 - 8

    • Detractors: score between 0 - 6

    How to Calculate Net Promoter Score

    The score is calculated by subtracting the percentage of customers who are "Detractors" (score 0-6) from the percentage of customers who are "Promoters" (score 9-10). This gives you your Net Promoter Score.

    So, if 60% of your customers are Promoters and 10% are Detractors, your NPS would be +50.

    How to Improve Net Promoter Score

    If you're looking to improve your NPS, here are a few things you can do:

    • Increase the quality of your products or services

    • Make it easier for customers to do business with you

    • Improve your customer service levels

    • Address customer concerns and complaints promptly

    Why Is Net Promoter Score Important

    While NPS is a relatively simple concept, it can be an extremely valuable tool for businesses. That's because NPS provides insights into both customer satisfaction and loyalty.

    In other words, it can help you not only understand how your customers feel about your product or service but also how likely they are to continue doing business with you. It can help identify areas where improvements need to be made in order to increase customer satisfaction and loyalty.

    Additionally, because NPS is based on a scale of 0-10, it's easy to track changes over time and compare your performance to other businesses.

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