NPS (Net Promoter Score) is gaining more and more attention. Organizations more often start to measure customer loyalty with NPS instead of satisfaction.
NPS has been created by Fred Reichheld, Bain & Company i Satmetrix. In 2003 it was described in Harvard Business Review in the article “The One Number You Need to Grow“.
In practice, NPS conception is very simple. Respondent answers one question “How likely is it that you would recommend our company / service to a friend or colleague?“, by selecting a rank between 1 – 10. People who selected 9 – 10 are called Promoters, values 7 – 8 are called Passives, and marks below 7 are called Detractors.
Depending on selected value respondents are redirected to answer additional questions and can describe what they like or dislike about the company or services.
Your task is to have as many Promoters as possible and at the same time as few Detractors as possible. NPS is calculated by subtracting from the percentage of Promoters, the percentage of Detractors. It is assumed that 70% is a good score.
Net Promoter Score = (% of Promoters) – (% of Detractors)
Net Promoter, NPS, and Net Promoter Score are registered trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.