Net Promoter Score® (NPS®)
  • Net Promoter Score® (NPS®)
Originally published: 16/04/2018 14:49
Publication number: ELQ-58548-1
View all versions & Certificate
certified

Net Promoter Score® (NPS®)

This tool identifies customers' likelihood of making recommendations.

Description
The value of customers is generally calculated using only the variables spent and the frequency of purchases. Nevertheless, customer value can be created in many other ways. For example, if they recommend the service to other potential buyers. The "word-of-mouth" tactic is fuelled by social networks, metasearch websites or portals that provide customer feedback.

When customers give positive recommendations, this can increase sales and allow companies to save of advertising costs. The Net Promoter Score® (NPS®) is an indicator that estimates the probability of recommendation of a group of customers based on the recommendation intention of single customers. The concept was invented and trademarked by Fred Reichheld, Bain & Co, and Satmetrix.

Surveys are used to collect the data, and respondents are asked to score from 0-10 the probable of recommending the product or service. A score of 9-10 is considered a real promoter, while 6 or below are the detractors. A score of 7 to 8 are considered passive as even though they would recommend it, the reality if they do not end up recommending. The NPS® is the percentage of promoters minus the percentage of detractors.

This Best Practice includes
1 Excel Template

Alberto Scappini offers you this Best Practice for free!

download for free

Add to bookmarks

Discuss

Further information

To identify customers' likelihood of making recommendations.

Reviews

  • Rate this Downloadable Best Practice

    Write a review

  • Nancy Godines(last updated: 21/09/2020 05:21)
  • JWU(last updated: 06/09/2019 10:27)
  • Frederico  Possivel(last updated: 25/03/2019 22:22)
  • francés(last updated: 02/10/2018 13:45)

keyboard_arrow_leftkeyboard_arrow_right

More Best Practices from Alberto Scappini

See all
keyboard_arrow_leftkeyboard_arrow_right

Related categories


See all

Any questions on Net Promoter Score® (NPS®)?

The user community and author are here to help. Go ahead!


4.5 / 5 (4 votes)

please wait...