NPS (Net Promoter Score)
Learn about NPS (Net Promoter Score), a key metric used to measure customer loyalty and satisfaction. Understand its definition, usage, benefits, and related software.
Definition
The Net Promoter Score (NPS) is a widely used market research metric that measures customer loyalty and satisfaction. It is calculated by asking customers one simple question: 'How likely are you to recommend our company/product/service to a friend or colleague?' The answers are given on a scale of 0-10 and customers are categorized into Promoters (9-10), Passives (7-8), and Detractors (0-6).
Usage and Context
NPS is used across many industries and sectors as a reliable measure of customer sentiment. It helps businesses identify their loyal customers (Promoters) and those who are unsatisfied (Detractors). By focusing on the feedback from Detractors, companies can improve their products or services and convert these Detractors into Promoters.
FAQ
What is a good NPS score?
An NPS score can range from -100 to +100. Any score above 0 is considered 'good' as it indicates more Promoters than Detractors. A score of +50 is considered excellent.
How often should NPS be measured?
There is no fixed rule on how often to measure NPS. Some companies measure it quarterly, while others do it annually. However, it is crucial to measure it consistently over time to track changes in customer sentiment.
Related Software
There are several software tools available for measuring and analyzing NPS, including SurveyMonkey, Qualtrics, and Medallia. These tools help businesses collect customer feedback and calculate their NPS.
Benefits
NPS is a simple, easy-to-understand metric that can provide valuable insights into customer satisfaction and loyalty. It can help businesses identify areas for improvement and track the effectiveness of their customer service strategies.
Conclusion
In conclusion, NPS is a powerful tool for measuring customer loyalty and satisfaction. It is easy to implement and can provide valuable insights that can drive business growth.
Related Terms
CSAT (Customer Satisfaction)
CSAT (Customer Satisfaction) is a key performance indicator that measures the satisfaction level of customers with a company's products or services.Customer Feedback
An explanation of the term 'Customer Feedback', its usage, context, related software, benefits, and more.Customer Feedback Analysis
Customer Feedback Analysis is the process of evaluating customer comments to understand their experiences and make informed business decisions.Customer Feedback Analyst
A Customer Feedback Analyst is a professional who collects, analyzes, and interprets customer feedback to improve a company's products or services.Customer Feedback Coordinator
A Customer Feedback Coordinator manages the collection, analysis, and response to customer feedback, playing a crucial role in business improvement and growth.Customer Feedback Director
A Customer Feedback Director is a professional role focused on managing and analyzing customer feedback to improve business operations and customer satisfaction.Customer Feedback Management Systems
A detailed explanation of Customer Feedback Management Systems, their usage, benefits, related software, and common questions about them.Customer Feedback Manager
A Customer Feedback Manager collects, analyzes, and interprets feedback from customers to improve products, services, and overall customer experience.Customer Feedback Specialist
A Customer Feedback Specialist is a professional who collects, analyzes, and manages customer feedback to improve a company's products or services.Customer Feedback Strategist
A Customer Feedback Strategist collects and analyzes customer feedback to improve customer experience and business operations.Customer Feedback Systems
Detailed explanation of Customer Feedback Systems, their uses, benefits, related software, and frequently asked questions.Customer Loyalty
Customer loyalty refers to the likelihood of repeat customers choosing a specific brand or company over its competitors. It is beneficial for business growth and profitability.Customer Loyalty Analyst
A Customer Loyalty Analyst is a professional who interprets customer data to understand factors influencing loyalty, aiming to develop strategies that increase customer retention.Customer Loyalty Consultant
A Customer Loyalty Consultant is a professional who helps businesses improve customer retention and satisfaction, ultimately increasing revenue.Customer Loyalty Director
A Customer Loyalty Director is responsible for developing and implementing strategies to improve customer loyalty and retention.Customer Loyalty Manager
A Customer Loyalty Manager is a professional who manages customer retention and loyalty strategies to ensure customer satisfaction and boost business profitability.Customer Loyalty Specialist
A Customer Loyalty Specialist is a professional focused on maintaining and enhancing a company's relationship with its customers to increase customer satisfaction, retention, and loyalty.Customer Loyalty Strategist
A Customer Loyalty Strategist is a professional who develops strategies to foster customer loyalty, leading to increased business profits and growth.Customer Retention
Customer retention refers to strategies used by businesses to encourage repeat business and loyalty from their existing customer base.Customer Retention Specialist
A Customer Retention Specialist is a professional responsible for managing customer relationships and ensuring customer loyalty and satisfaction.Customer Satisfaction Analyst
A Customer Satisfaction Analyst is a professional responsible for analyzing customer feedback to improve satisfaction levels.Customer Satisfaction Coordinator
A Customer Satisfaction Coordinator is a professional who ensures customer satisfaction with a company's products or services.Customer Satisfaction Director
A Customer Satisfaction Director is a high-level executive who oversees customer service activities, develops customer service policies, and measures customer satisfaction.Customer Satisfaction Executive
A Customer Satisfaction Executive is responsible for ensuring outstanding service and support to customers, aiming to increase customer satisfaction, loyalty, and retention.Customer Satisfaction Manager
A Customer Satisfaction Manager is a critical role in businesses, responsible for improving customer service and satisfaction.Customer Satisfaction Metrics
Customer Satisfaction Metrics are quantitative measures used to assess the level of customer satisfaction with a company's products or services.Customer Satisfaction Research Director
A Customer Satisfaction Research Director oversees research activities aimed at understanding customer satisfaction levels, helping businesses improve their customer relationship strategies.Customer Satisfaction Researcher
A Customer Satisfaction Researcher is a professional who conducts research to understand and improve a company's customer satisfaction.Customer Satisfaction Specialist
A Customer Satisfaction Specialist is a professional who ensures customer needs are met, handles queries, and works towards improving customer satisfaction.Customer Satisfaction Strategist
A Customer Satisfaction Strategist is a professional who develops strategies to improve customer satisfaction, enhance customer experience, and drive business growth.Customer Satisfaction Survey Analyst
A Customer Satisfaction Survey Analyst designs and implements surveys to gauge customer satisfaction. They analyze results to help companies improve.
AI Support That Sets You Apart — Start Leading Today.
