NPS, or Net Promoter Score, it is a metric used to measure customer satisfaction and loyalty towards a company, product or service. Developed by Fred Reichheld, Bain & Company and Satmetrix in 2003, NPS has become one of the most popular tools for assessing customer experience and predicting business growth
Operation
The NPS is based on a single fundamental question: "On a scale of 0 to 10, qual a probabilidade de você recomendar nossa empresa/produto/serviço a um amigo ou colega?”
Categorization of respondents
Based on the answers, customers are classified into three groups
1. Promoters (score 9-10): Loyal and enthusiastic customers who are likely to continue buying and recommending to others
2. Passive (score 7-8): Satisfied customers, but not enthusiastic, vulnerable to competitive offers
3. Detractors (score 0-6): Unhappy customers who can harm the brand through negative feedback
Calculation of NPS
The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters
NPS = % Promoters – % Detractors
The result is a number between -100 and 100
Interpretation of NPS
– NPS > 0: Generally considered good
– NPS > 50: Considered excellent
– NPS > 70: Considered world-class
Benefits of NPS
1. Simplicity: Easy to implement and understand
2. Benchmarking: Allows comparisons between companies and sectors
3. Predictability: Correlated with business growth
4. Actionability: Identifies areas for improvement and dissatisfied customers
Limitations of NPS
1. Excessive simplification: It may not capture the nuances of the customer experience
2. Lack of context: Does not provide reasons for the assigned scores
3. Cultural variations: Interpretations of the scale may vary between cultures
Best practices
1. Follow-up: Ask the reason for the score to gain qualitative insights
2. Frequency: Measure regularly to track trends
3. Segmentation: Analyze the NPS by customer or product segments
4. Action: Use insights to improve products, services and experiences
Implementation
The NPS can be implemented through email surveys, SMS, website, or integrated into applications and digital products
Важливість для бізнесу:
NPS has become a key metric for many companies, often used as a KPI (Key Performance Indicator) to assess customer satisfaction and overall business performance
Evolution of NPS
Since its introduction, the concept of NPS has evolved to include practices such as "Closed Loop Feedback", where companies actively monitor respondents to solve problems and improve the experience
Conclusion
The Net Promoter Score is a valuable tool for measuring and improving customer loyalty. Although it has its limitations, its simplicity and correlation with business growth have made it a widely adopted metric. When used in conjunction with other metrics and customer experience practices, NPS can provide valuable insights to drive customer satisfaction and business growth
