What is net promoter score (nps)?

Net promotor score (NPS)

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NPS or Net Promoter Score is considered as management tool which could be used in gauging loyalty of the customer relationship of a certain business.

NPS could be of great alternative to the traditional customer satisfaction research and so it is associated with growth of revenue. Net Promoter Score is a customer loyalty metric that measures the loyalty that exists between the consumer and the provider. These providers are those that are into asking for questions into the NPS survey and consumers are those that are referred as the customers, respondents or employees.

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Net Promoter Score is considered as an index that ranges from -100 to 100 which measure the willingness of the clients to recommend products and services of a company to others. There are numbers of customers that are being surveyed with only one question. And their ratings would be the basis of determining their category which could be passives, detractors and promoters.

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Passives are those that provided scores of 7-8 wherein they are somewhat satisfied with the company but there could be a possibility of switching to other companies offering the same products or services once given with opportunity. Passives are as well not into spreading negative word of mouth but could not be enthusiastic about the company’s products and services to promote or advertise.

Promoters are those that have answered 9 to 10. These customers really love the products and services of the company. They are as well referred as the repeat buyers and those that are enthusiastic evangelist that recommends the products and services of the company to almost numbers of potential buyers. But for the detractors, these are those customers that provided score from 6 and lower.

Net promotor score (nps)

These customers are totally not thrilled by the services and products of the company. Detractors are not to purchase at all and so they are to possibly damage the reputation of the company through spreading negative word of mouth. So, it would be of great advantage for a certain company to get higher rates of either passives or promoters compared to detractors.

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Net Promoter Score would be determined through subtracting the percentage of those customers who are being detractors from promoters. Once all of the customers gave scores equal to 6 and below, it will result to a NPS of -100. On the other hand, if all customers provided scores 9 to 10 therefore the total NPS would be 100. In addition, customers are as well provided with the chance of leaving their comments into the surveys being sent to them.

In the industry of business, it would be of great importance to make sure that your customers are satisfied with what you are offering. Through the use of NPS, you will be provided with ideas on how satisfied your customers would be. If you want to achieve success then better yet consider those ways on how you are to improve your Net Promoter Score. The higher your NPS the more chance you’ll attain your success in business.

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