NPS or Net Promoter Score is one of the most widely used customer loyalty KPIs. It measures customer satisfaction using a single question.
How likely would you be to recommend a service/product to a friend or colleague?
The respondent answers the question on a scale of 1 to 10. 1 represents a very unlikely recommendation and 10 the opposite.
Based on their answers, respondents are divided into three categories:
9-10 = Promoters
7-8 = Liabilities
1-6 = Detractors
NPS is calculated by subtracting the percentage of Detractors from kenya phone number list the percentage of Promoters. This will give a result between -100 (non-Promoters) and 100 (non-Detractors).
NPS
What is a good NPS?
NPS scores vary by industry, but a positive NPS (one greater than zero) is generally considered good, an NPS of +50 is considered excellent, and anything over 70 is exceptional.
You can see how you stack up in your industry by taking a look at all the data collected by NPS Benchmark .
Why NPS?
While NPS has received criticism for its harsh formula, it is one of the most widely used metrics for measuring customer experience quality and loyalty.
Studies suggest that a question based on the likelihood of recommendation helps to predict customer behavior and business performance effectively.
From the customer's perspective, the NPS survey is quick and easy to complete. As a result, the response rate is usually high as well.
NPS is a simple, ready-to-use metric that makes it easy to evaluate the success of customer experience management.
NPS sends a clear message about how much your customers like your company.
To get the most out of NPS:
In addition to the result itself, it is important to find out the reasons why respondents gave certain answers. Gain insight into what should have been done differently to turn Detractors and Passives into Promoters.
Measure NPS regularly and study how different changes and developments affect it.
