What is Net Promoter Score
The Net Promoter Score which is abbreviated as NPS, defined as a range index from -100 to 100 that measures and reflects how likely a customer can recommend your products or services to his or her friends. It helps businesses to get visibility and identify the brand promoters and detractors.
Net Promoter ScoreCalculation
The NPS calculation is not very complex and can be done by asking a simple question to customers i.e., On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague? When a customer replies to this question then the company will be able to find whether the customer is detractor, passives and promoter.
Net Promoter Score Examples
· If a customer gave score of 6 or below then the
customer is a detractor
· If a customer gave score of 7 or 8 then the customer
is a passive
· And if a customer gave the score of 9 or 10 then the
customer is clearly a promoter
Net Promoter Score Formula
But the overall Net Promoter ScoreFormula is simple when you subtract the percentage of detractors with the percentage of promoters. It is complex when a company survey a lot of customers at one go and the NPS score calculation becomes clear and company gets a Net Promoter Score. The higher the NPS, the better the performance of company’s products and services in the market.
Net Promoter Score Benchmark
In different industries, there is a different NPS benchmark which defines the average NPS score. Every company should measure Net Promoter Score to understand how is the relationship the company has with the respondents.
Net Promoter Score Best Practices
Net Promoter Score Best Practice is to follow up with detractors and resolve their concerns in order to turn them into promoters. It’s recommended to never neglect promoters because they are the ones who can bring your business more customers. Try to take actions that helps your company to maintain good relationship with promoters.
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