Net promoter score (NPS)
The Net Promoter Score is an index ranging from 0 to 10 that measures the willingness of customers to recommend a company’s products or services.
It is a snapshot in time to assess how happy your customers are, or not.
The NPS is used for gauging customers overall satisfaction with a company’s product or service and the customer’s loyalty to the brand. Customers are surveyed randomly on one single question rated on an 11-point scale on the likelihood of recommending the company or brand to a friend or colleague.
The responses are then divided up as follows:
- Detractors – score of 6 or lower
- Passives – score of 7 or 8
- Promoters – 9 and 10
The aim is to maximise the number of customers who are promoters of a company. Unfortunately, companies often use the net promoter score in isolation to measure customer satisfaction and loyalty.
It is a great snapshot in time but it needs to be used in conjunction with other tools like market research to strategically drive business thinking and strategies.
Join the Discussion
Which maths and metrics covered in this activity do you think organisations most frequently? Are there any metrics that you think are not as useful for improving marketing activity? Why? Write your answers below.
Introduction to Marketing: Fundamentals of Marketing
Introduction to Marketing: Fundamentals of Marketing
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