NPS, or Net Promoter Score, is a metric used by businesses to measure customer loyalty and satisfaction. It involves asking customers to rate their likelihood of recommending a product or service to others on a scale from 0 to 10 and calculating the difference between the percentage of promoters (those who rate the product or service 9 or 10) and the percentage of detractors (those who rate the product or service 0 to 6).
Example of NPS
An example of NPS might be a software company sending out a customer satisfaction survey to its users and asking them to rate their likelihood of recommending the product to others on a scale from 0 to 10. The company would then calculate the difference between the percentage of promoters and the percentage of detractors to determine the NPS.
How to measure NPS
Measuring NPS involves asking customers to rate their likelihood of recommending a product or service to others on a scale from 0 to 10 and calculating the difference between the percentage of promoters and the percentage of detractors. Additionally, businesses may gather feedback from customers to gain insights into their experiences with the product or service and identify areas for improvement.
Why is NPS important?
NPS is important for businesses because it provides insights into customer loyalty and satisfaction. By measuring the difference between the percentage of promoters and detractors, businesses can identify areas for improvement and take action to improve the overall customer experience. By focusing on NPS, businesses can build strong, loyal customer communities and drive long-term business success.