What is the Net Promoter Score?
Posted: Thu Jan 23, 2025 5:10 am
NPS (Net Promoter Score) is an indicator of customer loyalty to a company or product. The customer loyalty index allows marketers to adjust the company's sales policy.
This methodology was first published by Fred Reichheld, Bain & Company and Satmetrix in 2003 in the Harvard Business Review.
How did the NPS development proceed spain mobile phone numbers database further:
2006 : "business sharks" from the annual list of the world's largest companies Fortune Global 500 (American Express, Siemens, Phillips, Apple and others) begin to measure their NPS and use this methodology to make strategic and management decisions.
2011: NPS is transformed into a management system, playing a significant role in adjusting sales policies and increasing profits.
2016: NPS is considered the leading indicator of a company's success and customer recognition.
In order to find out what is connected with customer loyalty, Reichheld analyzed an impressive amount of data and determined a close connection between loyalty and the willingness to recommend a product (service) to one’s social circle. The article about NPS was called “The One Number You Need to Grow.”
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
The author considered traditional methods of determining the level of consumer loyalty to be complex and unreliable, since surveys cannot produce a mathematically precise index. The system for calculating NPS that he proposed was based on just one question. It is acceptable to ask the client why he answered this way, in order to either identify what loyalty is based on or to determine loyalty barriers.
When is the best time to measure customer satisfaction and loyalty?
The determining factor in correctly determining a company's NPS is choosing the right time for the study. Here are some "good times":
Before the client finally refuses the company's services (Exit Survey). If a person has used the company's goods or services for some time and then decided to break off relations with it, this is an alarm bell. It means that the client has not become your supporter, something has pushed him away.
Try to use this situation to determine what you did wrong. Even if the customer decides to leave after the survey, you will still have valuable information on hand from which you will draw conclusions.
After the free trial period (Post Free Trial). Perhaps the potential customer used the trial version, the trial period expired, but the consumer did not decide to buy the paid version. This means that he is not sufficiently involved in the purchase process. Conduct a survey, and this will help to identify miscalculations.
This methodology was first published by Fred Reichheld, Bain & Company and Satmetrix in 2003 in the Harvard Business Review.
How did the NPS development proceed spain mobile phone numbers database further:
2006 : "business sharks" from the annual list of the world's largest companies Fortune Global 500 (American Express, Siemens, Phillips, Apple and others) begin to measure their NPS and use this methodology to make strategic and management decisions.
2011: NPS is transformed into a management system, playing a significant role in adjusting sales policies and increasing profits.
2016: NPS is considered the leading indicator of a company's success and customer recognition.
In order to find out what is connected with customer loyalty, Reichheld analyzed an impressive amount of data and determined a close connection between loyalty and the willingness to recommend a product (service) to one’s social circle. The article about NPS was called “The One Number You Need to Grow.”
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
The author considered traditional methods of determining the level of consumer loyalty to be complex and unreliable, since surveys cannot produce a mathematically precise index. The system for calculating NPS that he proposed was based on just one question. It is acceptable to ask the client why he answered this way, in order to either identify what loyalty is based on or to determine loyalty barriers.
When is the best time to measure customer satisfaction and loyalty?
The determining factor in correctly determining a company's NPS is choosing the right time for the study. Here are some "good times":
Before the client finally refuses the company's services (Exit Survey). If a person has used the company's goods or services for some time and then decided to break off relations with it, this is an alarm bell. It means that the client has not become your supporter, something has pushed him away.
Try to use this situation to determine what you did wrong. Even if the customer decides to leave after the survey, you will still have valuable information on hand from which you will draw conclusions.
After the free trial period (Post Free Trial). Perhaps the potential customer used the trial version, the trial period expired, but the consumer did not decide to buy the paid version. This means that he is not sufficiently involved in the purchase process. Conduct a survey, and this will help to identify miscalculations.