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Net Promoter Score (NPS)

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.

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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

A high NPS score indicates that a high percentage of customers are satisfied and willing to recommend the company, while a low NPS score indicates that there is room for improvement in customer satisfaction.

Using Net Promoter Score

NPS is a valuable metric for businesses because it can help them:

  • Identify areas for improvement in customer experience
  • Measure the effectiveness of marketing and customer service initiatives
  • Track customer loyalty over time
  • Benchmark against competitors

NPS is a simple yet powerful metric that can provide businesses with insights into customer satisfaction and loyalty.

Why Learn about Net Promoter Score?

There are many reasons why you might want to learn about Net Promoter Score, including:

  • You work in customer service or marketing and want to improve customer satisfaction.
  • You are a business owner or manager and want to measure the health of your business.
  • You are a student or researcher interested in customer behavior and satisfaction.

How to Learn about Net Promoter Score

There are many ways to learn about Net Promoter Score, including:

  • Reading articles and books about NPS
  • Taking online courses about NPS
  • Attending workshops or conferences about NPS
  • Talking to experts in the field of customer experience

Online courses can be a great way to learn about Net Promoter Score because they are flexible, affordable, and accessible.

Many online courses on NPS cover the following topics:

  • The basics of NPS
  • How to calculate and use NPS
  • How to improve NPS
  • Case studies of companies that have successfully used NPS

By taking an online course on NPS, you can learn the skills and knowledge you need to improve customer satisfaction and grow your business.

Careers in Net Promoter Score

If you are interested in a career in customer service or marketing, learning about Net Promoter Score can be a valuable asset. Some careers that may involve working with NPS include:

  • Customer Service Manager
  • Marketing Manager
  • Market Researcher
  • Customer Experience Specialist
  • Business Analyst

These careers offer the opportunity to make a real impact on customer satisfaction and business success.

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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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