Net Promoter Score Explained
Net Promoter or Net Promoter Score(NPS) is a management tool that can be used to gauge the loyalty of the firm’s customer relationships. It serves as an alternative to traditional customer satisfaction research. NPS has widely been adopted by more than 2/3 of Fortune 1000 companies.
The Net Promoter Score (NPS) is determined by subtracting the percentage of customers who are detractors from the percentage who are promoters. What is generated is a score between -100 and 100 called the Net Promoter Score. At one end of the spectrum, if when surveyed, all of the customers gave a score lower or equal to 6, this would lead to an NPS of -100. On the other end of the spectrum, if all of the customers were answering the question with a 9 or 10, then the total Net Promoter Score would be 100.
Net Promoter Score is Calculated Based on Responses to a single question.
How likely is it that you would recommend our company, products, or services to a friend or colleague?
