What is NPS

NPS Loyalty Index (Net Promoter Score) – an index of determination of consumer commitment to a product or company (readiness index to recommend). Used to assess readiness for re-purchases.

A relatively young consumer loyalty assessment system. The method was first mentioned in the Harvard Business Review in December 2003.

Frederick Reicheld is considered the founder of the method. He first announced the method in the article The One Number You Need to Grow, published in the Harvard Business Review in December 2003. In 2006, he released a book entitled: The Ultimate Question: Driving Good Profits and True Growth. In it, he continued his arguments on the theme of loyalty, profitability and company growth.

NPS Book
Net Promoter Score Book




How to Measure NPS

Clients of the company are invited to answer the question.

“What is the probability that you would recommend a company / product / brand to your friends / acquaintances / colleagues?” On an 11-point scale, where 0 corresponds to the answer “I will not recommend it in any way”, and 10 – “I will definitely recommend”.

Based on the estimates obtained, all consumers are divided into 3 groups:
9-10 points – product / brand promoters, 7-8 points – neutrals / passive, 0-6 points – critics (detractors).

The formula for calculating the index:
Net Promoter Score =% promoters -% critics

Net promoter score
NPS Formula




NPS Goals

Goal 1

Determine who our client is in relation to the company, products and services.

Goal 2

Find out why our client belongs to this category.

Goal 3

Hear the customer.

Goal 4

Increase the percentage of promoters.

Goal 5

Introduce quarterly monitoring of customer satisfaction based on the Net Promoter Score methodology.





Result

Happy Customer
Happy Customer

Satisfied customer

  • buys more
  • buys more often
  • recommends

In the nearest future I will share with you some work I’ve done in the filed of NPS in the past couple of years. Meanwhile, I’ sure you will enjoy 4 Best E-mail Marketing Platforms to Use in 2019. You may use of of the services to prepare your NPS survey and do it as a regular e-mail marketing campaign.