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Net Promoter Score Is A Customer Loyalty Metric

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Introduction to Net Promoter Score
Net Promoter Score Defined
The Net Promoter Score is a customer loyalty metric that is used to gauge the loyalty of an organization 's customer relationships by asking how likely the customer is to recommend the organization to others. It serves as either an alternative or a supplement to traditional customer satisfaction surveys and is often correlated with revenue growth. NPS measures both customer satisfaction and brand loyalty.

How NPS is calculated
NPS defines customers as either Detractors (actively warning against the brand) or Promoters (actively recommending the brand) on a scale from -100 to +100. A quick primer in analyzing Net Promoter Score:
-100 Detractors
-50 Poor score
0 Average/good
+50 Excellent score
+100 Promoters

Ratings close to -100 indicate a large number of detractors to the organization, while scores close to +100 indicate a large number of active brand promoters. Any positive score is good, and generally, scores above +50 are considered excellent on the scale.

The origins of NPS
Out of a desire to understand what would stimulate and sustain an organization 's growth, Fred Reichheld and a team from Bain & Company launched a research project that would help them determine a means of understanding how customer feelings and affinities affect actual behavior, beyond basic customer satisfaction surveys.

Working with data supplied by Sat metrix, Reichheld 's team tested several questions to see how

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