Net Promoter Score (NPS) refers to a metric that measures the customer loyalty. This metric measures how likely customers are to recommend a business, product, or service to others. This metric is analyzed and is used to assess the customer satisfaction rate among the customers for your business services or product.. It is widely used to assess customer satisfaction and brand perception.
How is Net Promoter Score (NPS) Created and Calculated?
- Customers rate the satisfaction rate and are recommended on a scale of 0 to 10.
- The respondents are categorized into three groups:
- Promoters (9-10): In this category, includes loyal customers, who are satisfied with your business and are actively recommending services to others.
- Passives (7-8):Â These are the categories that include neutral customers, who have an average experience with your business. They might switch brands.
- Detractors (0-6): These customers are not very happy with your business. These customers are likely to spread negative feedback.
- Formula for Net Promoter Score : NPS = % Promoters – % Detractors
What is the importance of Net Promoter Score?Â
- Helps businesses measure customer satisfaction.
- Enhance brand reputation and perform brand advocacy.
- Identifies areas for improving customer experience and retention.
- Improvise marketing and customer engagement strategies.
NPS is a key performance indicator (KPI) for long-term business growth and customer relationship management.
