Net Promoter Score® is a great Customer Management tool. Incredibly simple yet effective, it measures Customer Satisfaction and Loyalty. Unsurprisingly, it is used by top companies across the world to boost profits and Growth.
In short, NPS® is based on one question. That is,
“On a scale of 0 to 10, how likely are you to recommend us to your friends and colleagues?”
And, customers answer on this 11-point scale.
Basically, customers who give a score of 9 or 10 are termed Promoters. Since, they are loyal admirers of your brand, they promote Growth.
On the other hand, customers who chose 7 or 8 are called Passives. Because, these are neither admirers not haters, they are not included in NPS® calculation.
Finally, customers who give a score of 6 or less are Detractors. Since, they are extremely dissatisfied, they have a high chance of Churning. Furthermore, they hurt Growth through negative word of mouth.
Now, Net Promoter Score® is calculated by subtracting the percentage of Detractors from Promoters.
Net Promoter Score® simplifies Customer Management. It measures ‘recommendations’ which is an impetus for organic growth. Moreover, word of mouth advertising is not just cost effective, it is also the most credible. And, Net Promoter Score®s quantifies it, thereby allowing companies to measure and manage it.
Unsurprisingly, top companies across the world use it to predict and manage Growth. NUMR, a customer experience management (CXM) company has curated a list of some of these below-
CONSUMER GOODS AND DURABLES
FINANCIAL SERVICES
TECHNOLOGY
TELECOM
MISCELLANEOUS
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