The Net Promoter Score (NPS) is a customer loyalty metric. It’s a simple, yet powerful way to measure customer happiness. And it is a great indicator of growth.
The Net Promoter Score was introduced in the Harvard Business Review in 2003 by Fred Reichheld and is based around one customer survey question:
“How likely is it that you would recommend us to a friend or colleague?”
Customers choose an answer on a scale of 0 (Not at all likely) to 10 (Extremely likely). And based on their response, they are categorised as Detractors, Passives or Promoters.
Your score is an absolute number which ranges from -100 (everyone is a detractor) and +100 (everyone is a promoter)
Detractors (0-6) are generally unhappy. They have high potential to harm your brand through negative word of mouth. It’s important to resolve their issues before any damage is done.
Passives (7-8) are satisfied, but somewhat unenthusiastic about your company. They are vulnerable to switching to a competitor.
Promoters (9 -10) are loyal enthusiasts of your business. Repeat purchases will be made by promoters and they will recommend your company to others, which will reduce your costs to acquire new customers.
Numerous studies have linked the Net Promoter Score to organic growth. And thousands of companies worldwide use the Net Promoter System. Apple, American Express, eBay and Zappos are just some of the names you’ll recognise.
Want to find out your Net Promoter Score? Get started for free with Devoted.