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Wednesday, August 26, 2015

What is a Net Promoter Score® (NPS)?


The Net Promoter Score, or NPS®, is based on the fundamental perspective that every company’s customers can be divided into three categories: Promoters, Passives, and Detractors.

By asking one simple question – How likely would you be to recommend XYZ Company to others as a good company to work with? – you can track these groups and get a clear measure of your company’s performance through your customers’ eyes. Customers respond on a 0-to-10 point rating scale (10=extremely likely; 0=not at all likely) and are categorized as follows:
  • Promoters (score 9-10) are loyal enthusiasts.
  • Passives (Neutral) (score 7-8) are satisfied, but unenthusiastic.
  • Detractors (score 0-6) are unhappy customers.
The NPS can be as low as −100 (everybody is a Detractor) or as high as 100 (everybody is a Promoter). A NPS that is positive (e.g. higher than zero) is felt to be good, and a NPS of 50 is considered excellent. To calculate the NPS, you subtract the percentage of customers who are Detractors from the percentage of customers who are Promoters.  

If you would like to find out about your customer NPS, give us a call. We can help you Know More, so you can Do More. Call us toll-free at 1-800-999-6615, email us at mail@tweedweber.com and/or visit us on the web at www.tweedweber.com. Also, be sure to follow us on LinkedIn (Tweed-Weber, Inc.) and Twitter (@TweedWeber).

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