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Net Promoter Score (NPS)

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May 1, 2024 3 minute read

Net Promoter Score (NPS) is a customer satisfaction metric that measures the loyalty and satisfaction of customers towards a brand or company. It is a widely used metric to track customer experience and gauge the overall health of a business.

Understanding Net Promoter Score

NPS is based on a simple question that is asked to customers: "How likely are you to recommend our company/product/service to a friend or colleague?" Customers respond on a scale of 0 to 10, where 0 represents "not at all likely" and 10 represents "extremely likely."

Based on their responses, customers are categorized into three groups:

  • Detractors (0-6): These customers are unhappy with the company's product or service and are likely to spread negative word-of-mouth.
  • Passives (7-8): These customers are somewhat satisfied but not enthusiastic enough to recommend the company to others.
  • Promoters (9-10): These customers are highly satisfied and are likely to recommend the company to others.

Calculating Net Promoter Score

NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. The result is a score that can range from -100 to 100:

NPS = % Promoters - % Detractors

Path to Net Promoter Score (NPS)

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Reading list

We've selected 14 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Net Promoter Score (NPS).
Is written by Fred Reichheld, who is considered one of the leading experts on NPS. It provides a comprehensive overview of NPS and how it can be used to drive business growth.
Provides a step-by-step guide to implementing NPS. It is essential reading for any business that wants to improve its customer satisfaction and loyalty.
Discusses the importance of customer effort in driving loyalty. It provides practical advice on how to reduce customer effort and create a more effortless experience.
Provides a practical guide to creating memorable customer experiences. It includes case studies and examples from businesses that have successfully used moments of truth to drive growth.
Explores the relationship between customer satisfaction, loyalty, and profitability. It provides a framework for businesses to improve their customer service and drive growth.
Provides a comprehensive overview of customer loyalty. It includes insights into how businesses can create and preserve profitable customer relationships.
Provides a comprehensive overview of customer relationship management (CRM). It includes a discussion of NPS and how it can be used to improve customer relationships.
Discusses the importance of customer loyalty in driving business growth. It provides insights into how businesses can create a culture of loyalty and retain their customers.
Provides a case study of Nordstrom, a company that is renowned for its customer service. It includes insights into how Nordstrom uses NPS to improve its customer experience.
Provides a case study of the Ritz-Carlton Hotel Company, a company that is renowned for its customer service. It includes insights into how the Ritz-Carlton uses NPS to improve its customer experience.
Provides a case study of Disney, a company that is renowned for its customer service. It includes insights into how Disney uses NPS to improve its customer experience.
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